Wednesday, March 11, 2009

Rebelling Against the Market

I have a friend who recently had his car broken into on campus and had a significant amount of valuables stolen. The person(s) who broke into the car stole a subwoofer, amplifier, and the Sony head unit from the car, and then had the common courtesy to leave everything which was of little value to them in a neat pile outside the car by the tire.
Where do I begin with this one?! I would have to assume that this thief did their econ homework and realized that they demanded too low of a price in the market to ever have a chance of encountering a satisfactory equilibrium price for the stereo, amp, and woofer that they stole. This person was not satisfied with their market situation so they did what many people do when they are unhappy with the situation they have been forced into and they decided to rebel. By stealing from someone else, this person got the goods they wanted essentially for free (aside from opportunity costs and the risks they took from engaging in an illegal action).
Now I want to take into consideration the idea that there were two or more thieves who planned out this robbery (and possibly more) and decided to split the earnings equally. During the time they were going through the car, they see the cop car cruising through the alley and immediately, all but one of the thieves run off to safety. This one loner wasn’t prepared for this so they duck underneath the car but they have already been spotted. This thief ends up in a situation of a prisoners’ dilemma.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.