Markt
6 cards from across every topic, each citing a source. Tap one to open it in the feed.
- A price is a message nobody wrote.
Friedrich Hayek described in 1945 why prices are more than numbers: when the price of tin rises, thousands of firms …
- How a price emerges without anyone setting it.
If a price is too high, goods sit unsold and sellers lower it. If too low, shelves empty and buyers outbid each other. …
- The cheapest price is often just the one someone else pays.
Externalities are costs or benefits that land on bystanders. A factory skips filters and residents get the dirt; the …
- Who writes the cheque says nothing about who bears the tax.
Tax incidence separates the legal payer from the actual bearer. Whether a tax is levied on buyers or sellers does not …
- Why good used cars quietly leave the market.
George Akerlof showed in 1970 that when only the seller knows the quality, buyers pay just an average price. For good …
- Why nobody voluntarily pays for the lighthouse.
Public goods have two traits: nobody can be excluded from using them, and one person's use does not diminish another's. …