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252 pages, Paperback
First published January 1, 1978
The beach that is so overcrowded on a hot day that many people are not attracted and some leave in disgust (and even those that remain don’t enjoy it much) can be better exploited by the people to whom the beach belongs if attendance is regulated by an admission fee, the proceeds accruing to the people whose beach it is. Or admissions can be rationed among beachgoers, in numbers calculated to enhance the collective enjoyment of the beach, with people who adore bathing free to buy admissions from people who would rather have more money than swim.
These are not “free-market arrangements.” They require the intervention of some authority to set up a system of management.
Some social consequences have been left out of account. A market appears to do a pretty good job of allocating houses and apartments to people who need places to live. But it matches people only with living quarters, not with neighbors; the demographic, ethnic, and cultural patterns of living will be determined in the entire interactive process of choosing homes and neighbors and neighborhoods. The market transactions involve only the landlord and tenant.
the superior choice that requires coercion, enforceable contract, centralization of choice, or some way to make everybody’s choice conditional on everybody else’s
Migration is a semi-closed system. Any city or state can reduce the residents on welfare by excluding people who would be on welfare or inducing them to leave. But all states together cannot, except as people die or leave the country, and all cities together can do it only so long as frustrated migrants are on route between cities or assimilated into the countryside.
The government could attempt […]. It wouldn’t be easy to devise successful policies, but it wouldn’t be analytically different from so many things that the government presently tries to stabilize.