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by TeMPOraL 3868 days ago
First of all, the consumer and the supplier do not form a closed system (regardless of what some ideologies would want one to believe). You have to account for the effects supplying a customer with something has on the third parties. Those are the externalities I've mentioned, and even Wikipedia has a lot of examples.

Secondly, you have to take a look at the aggregate effects. So for instance I may need a new, shittier way to spam web with ads, and there's a company who'll happily satisfy my needs. By having this transaction, I start earning more, and now my competitors see the strategy and all decide to adopt it. The end result is that web is more spammed, my advantage disappers, and the new solution probably costs more than the old one, but now no one can go back. A classic coordination problem[0].

Finally, as 'lostlogin points out downthread, what you want doesn't always equal to what you need.

[0] - http://slatestarcodex.com/2014/07/30/meditations-on-moloch/, a day does not go by without me linking to it...

3 comments

I like that page, and also the Non-Libertarian FAQ[1] linked on it, which saves me summing up my feelings on the topic.

I'd still love a good dissenting take on it. The one linked near the bottom is awful.

[1] http://raikoth.net/libertarian.html

[EDIT] Now includes the link!

> The end result is that web is more spammed, my advantage disappers, and the new solution probably costs more than the old one, but now no one can go back.

These are not the only players in the game like you believe. Those who advertise more effectively on the web have more of an advantage over those who advertise via other media and those who don't advertise at all. And, as ads are more spammy and in-your-face, the advertised products get bought more whether all competitors are spamming or only some. Advertised products are bought more than they would be if the ads were mild or there were no ads at all.

PS: Thanks for the blog link it looks very interesting, I'll read it later.

And in doing so, you create a larger market for anti newer-shittier-spam ads, with the potential to erase ads for anyone who cares enough.
Which is strictly worse than not creating that market at all. It's just resources going to waste over the pointless zero-sum games, and that's exactly another reason where "satisfying user needs" doesn't cut it as a justification.
So, are you going to determine for us what people are allowed to put on their websites?
I admire your perseverance T. The doctrine that the free market leads to truth is difficult to dispel.