SubscribeDear Publishing Companies: Your industry is dying, but you are still in denial. Let me help you. The cost of making and distributing an e-book is something small for the first one and BASICALLY NOTHING for every one after that. In economics, we say the marginal cost is zero. You can’t reasonably expect people to [...]
Tag: economics
Moral Hazard: Why a Bailout is a Bad Idea
If you haven’t taken economics, maybe you haven’t heard of moral hazard. Apparently neither have politicians. (Part of the problem with not requiring lawyers to have an economic training, but that’s a different gripe.) The simplest definition for moral hazard is thus: the lack of any incentive to guard against a risk when you are [...]
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