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Friday, April 17, 2009

I'm An Anarchist When There Are No Externalities

Paulie, I don't think Foldvary would rule out a community deciding collectively not to collect geo-rent, or to dial down to zero the default contestable fines for depletion / pollution / congestion.  I wouldn't either.  It's vital to make these decisions as locally as possible, in order to allow for (i.e. voting with your feet).

Yes, some people would surely follow Ted Kaczynski to the edge of the wilderness in order to avoid provoking any nearby community by monopolizing / polluting /depleting / congesting any commons shared with them.  This would be an instance of Tiebout sorting, and I'm not worried that a lot of people would head for the hills.  Even if they did, there's nothing wrong with people driving farther, as long as they pay for any pollution or congestion they inflict on others.  Once all the externalities are internalized, then I'm an anarchist and am happy to let each person pursue her own utility function.