KillerApps Micro: Market Intervention
Cash rebates are an inefficient means to reduce carbon emissions.
Milk price support has discouraged vertical integration in the milk industry that might have led to cheaper milk for and lower tax on milk consumers.
US subsidies to domestic sugar cane and sugar beet growers have resulted in huge collateral damage to domestic industries and overseas producers.
Airlines deregulation has allowed more competitive discounters to grow at the expense of high-cost traditional hub-and-spokes airlines. But instead of exiting the market, the unprofitable traditional airlines hang on for dear life.
U. S. shrimpers use anti-dumping protection to resist competitive pressure from more efficient Asian shrimp farmers and to gain defacto subsidy.
Inefficient firms in mature industries often are preserved for political reasons long after they should have exited the market.
High transaction costs, whether natural or artificial, could delay the transfer of property rights from lower-value use to higher-value use.
Temporary property rights created out of sympathy or a preference for insiders over outsiders might become politically entrenched.
An ethnically integrated neighborhood may not come about or persist if it is not reinforced by deliberate intervention.
Total 9 records
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