In the most recent round of awards, President Obama gave behavioral economist Daniel Kahneman
the Presidential Medal of Freedom
. You can read more about the ceremony and Kahneman's work here
Economists obviously understand a lot about profit maximization and incentives, so it's not unreasonable that they would be careful to think about how companies and individuals would find loopholes in regulation when analyzing the efficacy of said regulation. Apparently sometimes these economists are overly, well, optimistic, in a weird way, regarding how cunning these companies and individuals are, and are therefore surprised when regulation actually achieves its intended purpose
You'd think that I was kidding about this, but no- it's actually a thing
. Based on what I've seen recently, I'll take John List
as my first draft pick.
One of the things that I teach my students is that not every company is a natural monopoly
- in other words, it's not always cheaper to be bigger, and diseconomies of scale
kick in at some point for most organizations. (This isn't surprising once you start thinking about the managerial overhead needed to keep getting bigger and bigger as a single firm.)
The Guardian disagrees on this point, apparently, albeit without example or evidence. Wonder if they want to be the pot or the kettle...