Class summary 11/16

The challenge

Not enough fish for people to consume: scarcity

Examples of Rationing Mechanisms

Need            Equal Shares (who determine who is needy? If we allocate the goods by need, people who need most won’t get the good---paradox)

Queues        “Kickin” Ass

Lottery        Merit-beauty? Smart? (who gets to define merit?)

Evaluation of Rationing Mechanisms

Thought: Where does competition come from?

(1). What is nature of competition(a. destructive   b. constructive)

If we  use price system, all that efforts can convert into benefits for everyone

When we are doing things to get a thing, we are sometimes producing nothing valuable things to others

(2). How does mechanism impact supply(Q)?

(3). Other Considerations