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by TeMPOraL
3868 days ago
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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... |
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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!