6 Jan 2008

Market Imperfections in New Orleans

I saw $5 on the ground last night in the French Quarter. According to the old joke* about neo-classical economics, it should not have been there. If it was, there are either too many neo-classical economists about, too many drunk football fans, or markets do not work as smoothly as they could in NOLA. I wasn't sure of which, but I took the money.
*Two economists are walking down the street. One says to the other "Hey, there's a $10 bill on the ground." The other replies "There's no money on the ground. If there were, someone would have picked it up already."

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