I talk about the 5 public policy problems that will arise in an Intangible economy.
The Market for Lemons
Why do people prefer buying used cars from a dealer rather than a private seller? Especially when people know they must pay a premium for dealer’s commission charges over and above the car’s selling price. This is the issue American economist George Akerlof addressed at length in his paper, “The Market for Lemons”. The paper... Continue Reading →
Why Firms Are Important
I explore why firms continue to be important in the gig era. Many ask: Why hire employees when you can get the work done by vendors? I respond: If this were such a cost-effective way of getting quality work done, why isn’t this more widespread? I borrow from Ronald Coase’s “The Nature of the Firm” to seek answers.
How Systems Overcome Decision Fatigue
I argue why mechanical consistency is a better bet for many of us. I argue why continuous recalibration can be bad citing examples of daily commute, agile marketing and investment. TL;DR version: Autopilot > Continuous Recalibration.
When is Government intervention in markets legitimate?
I discuss the grounds where it is legitimate for the Government to intervene in the markets.
Musings by Madhav 