Arnold Kling

Old-fashioned Microeconomics

Arnold Kling, Great Questions of Economics
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One of the fundamental tenets of microeconomics is that markets operate to eliminate shortages. Roger Bate believes that this would alleviate the scarcity of fresh water.

increasing water scarcity has only attracted greater government involvement in water allocation, when the opposite needs to occur. Government has failed. It's time to try the market. A market in water could lead to increased food production as well as reduced water use. And for many parts of the world it would reduce conflict, too.

Discussion Question. Would it be possible to design a market for water in which ownership of water does not become highly concentrated or monopolized?

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