1.06.1977

Gordon Tullock

Gordon Tullock, "The Social Costs of Reducing Social Cost", ed. Garrett Hardin and John Baden, Managing the Commons, San Fransisco, W.H. Freeman and Company, 1977.

In the market with externalities, the individual can be a free rider in the sense that he does not make payments. In governmental dealing with externalities, the individual can be a free rider in the sense that he acquires no information, and therefore, his decisions are uninformed. [151]

In the case of medicine, the individual characteristically first selects an expert advisor and then purchases the medicine on the advice of this expert. The only argument for restrictions is that the individual may injure himself because he is inadequately informed. Note, however, that it is the individual himself who bears the full cost of any such injury. Surely he would be motivated to acquire information for making his decision more strongly than he is motivated to acquire adequate information whether or not to have a seat belt in his car. [151]

We could expect that the voters' lack of information and thought would lead both to an increased importance of fashion and other fluctuating influences, and to the manipulation of the system by various interest groups. Probably civil servants and the media are the most powerful special interest groups. [154]

The voter is unable to determine the relative expertise of the specialists on each side and, hence, chooses to play safe by voting against the construction of new power plant. We can hardly blame the voter for this conclusion, assuming that he has no motive to become informed and that (particularly in this case) becoming well informed would be quite difficult. Decisions of this sort lead to optimum allocation of resources only by accident. However, a large number of such decisions are being made today, and it is likely that the cost to our society will be quite great. [155]

No comments: