Category Archives: Price fixing

The Law of Demand Applies to Labor

A foundation of economics is the law of demand: at higher prices, less of a good or service will be purchased than at lower. While most people comfortably accept the law of demand for most goods and services, many resist accepting it for low-skilled labor. They don’t want to believe that minimum wage laws, by forcingContinue Reading

Liquid Assets

The Freeman has published a piece in which I contrast the disorderly allocation of water with the orderly allocation of gasoline. A slice: Now what about water in drought-stricken states? Water prices are set by “authorities” at arbitrary prices that don’t change to reflect water availability. The authorities allocate water to various uses. But howContinue Reading

Let Markets Forces Regulate – Taxicabs

In this Freeman article I argue that “the sensible response” to any unfairness to taxicabs from competition from Uber, which has so far avoided government restrictions, “is not to burden Uber the way taxis are burdened, but to unburden the taxis and leave all ride services free to compete.” Two commenters on Facebook were notContinue Reading

Who’s Anti-competitive?

Here’s a letter to the Baltimore Sun: To the editor, The Annapolis mayor’s and taxicab companies’ justifications for regulating Uber conflict with the facts (“Annapolis gives Uber a warning,” July 15, 2014). The mayor “insists that [Uber be] regulated…like…taxicabs…to keep our citizens and visitors safe.” But Uber already checks its drivers’ backgrounds and requires they beContinue Reading

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