Economics
2 breaks
Prices, incentives and why markets do what they do.
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Why a free shortcut can make everyone's commute longer: Braess's paradox
Build a brand-new road and every commute gets longer. In a town of 4,000 drivers, two routes each take 65 minutes. Add a free shortcut and each driver…
Why good used cars vanish from the market: Akerlof's lemons
Why can a market of willing buyers and sellers fall apart? In 1970 the economist George Akerlof showed that when only the seller knows a used car's quality…