Sunday, November 20, 2011

Supply Rationing Criteria (November 16th, 2011)

Supply Rationing Criteria is what businesses can chargewhat other people value. Five fishes for 12 people.
  1. Needs- Appeals instinctively but very vague because it has a who and a why.
  2. Queue - first come first served. Still costly with lines.
  3. The Lottery- Is it fair? It is easy to rig and may or may not get it.
  4. Equal Shoves - Pure communism at a low cost or straight forward
  5. Might makes Right - Fight and medical costs and planning is hard
  6. Merit- deserves them for beauty, smart, and difficulty on accident.
Need is very costly. The people who need it will need to get it
The Higher the line, the higher the price

Evaluating the Rationing Mechanisms:
1) Where competition came from = scarcity. The compeititon is not in capitalism or communism.
2) Nature of competition and the destructive effort hasn't improved society from zero-sum
The constructive effort of price to produce and improve society. Still having the money if you lose and it is at a lot richer place.
What are incentives for producers to make delivery more valuable?

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