The 5 preconditions for perfect markets (as memorised for an exam in my not-very-recent past:)
– unlimited number of suppliers
– unlimited number of buyers
– perfect information
– homogeneous product
– and one other (anyone?)

Taking a stab here, based on semi-recent (stage 1 micro was first semester '06,…

I'd not realised Ormerod had released a new book. He'd developed some initial theoretical thinking about non-linear market dynamics in an earlier book, did he elaborate these further in this book?

He did, I can't quote details because it was a few months back that I read it, and had…

Trade Liberalisation Network: Australia/US FTA – Confirms TLN's Worst Fears

Another point on why free trade with USA is preferable to with China....

Local wages..... When any two countries go into a free trade association with one another..... that's going to hurt wages in the higher paid country and help lift them in the lower paid one.....

That point is…

Mathew Poole makes some good arguments as to why it's not so simple...

Well, let's do a compare and contrast on copyright and intellectual property; environmental and labour standards and so forth.

Well, for starters you're making the very erroneous assumption that I think IP law, especially around copyright, as it currently stands in NZ is vaguely fair and useful. I don't. I…

Local wages..... When any two countries go into a free trade association with one another..... that's going to hurt wages in the higher paid country and help lift them in the lower paid one.....

I'd rather the…

Oh you're taking the piss, Steve,

Not at all. China, America, better or worse?
In terms of human rights I see little difference and that difference has become smaller over the past ten years. The number of people, on a per capita basis, locked up may even be greater in…

How?

Oh you're taking the piss, Steve, and I don't really have any to spare.

What I meant, but phrased poorly due to being about to rush off to a lecture, was "If we put aside the human rights issues, what other possible grounds are there to object to an…

If we're going to debate FTA's and so forth, possibly all participants should explicitly annuciate the assumptions that underpin their starting positions before doing so.

is the US that much better?

Well, yes.

How?

Can anyone explain to me why people get so incensed about us signing an FTA with China, but desperately want us to get one with the US? I know all the human rights issues, but, really, is the US that much better?

Well, yes.

Can anyone explain to me why people get so incensed about us signing an FTA with China, but desperately want us to get one…

Free market trip to lower wage future

I've said it before, and I'll say it again. National ensured that we would remain a low-wage economy when they busted the unions and vested all the power with employers. I don't think it's healthy for the unions to be overly powerful, and…

Didn't someone post recently about how overly simplistic economic theories tell you what type of people are attracted to become economists?

The common flaw with most theories like the free-market (cue sideways look at marxism and communism also) is that they completely fail to account for the selfishness of human…

Peter Lyons: Free market trip to lower wage future

http://www.nzherald.co.nz/section/466/story.cfm?c_id=466&objectid=10529142&pnum=0

New Zealand's experiences over the past few decades should be a warning that a pure free market economy exists only in textbook models and the mathematical imaginings of academic economists.

Ormerod looks at the theory of perfect competition, and rival theories. He says that Economic Textbooks present the demand and supply curves as economic fact, rather than as the theory that won in the early part of last century.

Rachel, thanks for the heads-up. I'd not realised Ormerod had released…

Workers of the world unite – Support comrade tan!

You're enjoying this, aren't you?

Can you tell?

Everything is a distortion. Only believers in the doctrine of the Perfect Market think otherwise.

...

I've never quite got round to having this argument with someone who cares, but it has always struck me that the free market naturally tends toward monopoly and price fixing, rather than introducing competition,…

Everything is a distortion. Only believers in the doctrine of the Perfect Market think otherwise.

I've never quite got round to having this argument with someone who cares, but it has always struck me that the free market naturally tends toward monopoly and price fixing, rather than introducing competition, reducing…

]]> Wed, 27 Aug 2008 00:47:59 +1200 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66012#post66012 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66012#post66012 Tue, 26 Aug 2008 21:23:27 +1200 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66009#post66009 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66009#post66009

...it is absolutely in the interest of the private partner to load all the risk onto the government, and obscure the arrangement behind confidentiality.

As somebody who has worked for various suppliers in the past, it's my view that commercial confidentiality isn't as necessary as is made out. I don't…

]]> Tue, 26 Aug 2008 20:31:00 +1200 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66008#post66008 https://publicaddress.net/system/cafe/hard-news-national-exuberance/?p=66008#post66008

Said Nandor was the brightest one there, and one of the most sensible too.

Isn't this the point rather than how hard they work? Act's results so far don't seem to bear out any formula that say the harder you work the better the outcome.

This lawyer is, incidentally, an…

That's what I'm told by people I know who work inside Parliament but I can't claim personal experience LB. My reading of his contributions, in various forms, suggests he was however an empiricist (at least in his work in justice related issues).

That's my impression too. While he might not…

The problem with PPPs is that it is absolutely in the interest of the private partner to load all the risk onto the government, and obscure the arrangement behind confidentiality.

Oddly, the Sydney Cross City Tunnel did some but not all of this – the risk didn't ultimately rest with…

Caleb, excellent, thanks for the links. Monbiot's argument is consistent with most of the Australian commentary also.

Thanks, Paul. I really do wish there were more NZ journalists reporting on and critiquing this stuff, seeing the way both Labour and National seem to be going on the issue.

I’ve got nothing against Nandor, and I agree parliament does need idealists.

But I’ve never seen him being called hard-working before.

I'm reliably informed that the Green MPs are a hardworking bunch, with the exception of Ian Ewen-Street. I understand that during the 2002 – 2005 term, the two parties…

For anyone interested, this is the Office…

But I’ve never seen him being called hard-working before.

That's what I'm told by people I know who work inside Parliament but I can't claim personal experience LB. My reading of his contributions, in various forms, suggests he was however an empiricist (at least in his work in justice related…

There's space for idealists in Parliament but they're of the Nandor variety; hard-working empiricists

I’ve got nothing against Nandor, and I agree parliament does need idealists.

But I’ve never seen him being called hard-working before.

But I fear that Rodney gave his new recruit a glimpse into the real soul of the party.

Really Russell, I'd be more afraid if he didn't.

And Shawn Tan an idealist? If he has any trade union ideals, surely they are entirely contradicted by the Act Party, which has…

Act would be better for a few more idealists.

As opposed to the tragic bunch of malcontents they've currently got you mean... I don't know that they need more ideals, they're not currently very pragmatic, or at least that's not obvious when the answer to every policy question appears to…

We-ll, firstly he's only announced his intention to run so far AFAIK.
Secondly I heard (Andrew Little?) on the radio saying that given the amount of time involved he would have had to ask permission. And that if it were some more amenable political party said…

Or, perhaps you believe Hide's assertion that it's really about racial discrimination?

I forgot to mention that in my post. Hide saying that was truly, unforgivably cynical. It seems that Shawn Tan's conversion is genuine, and good luck to him — Act would be better for a few more idealists.…

Hope you're stocked up on antihysterics then, 'cause the season's starting...

Well, maintaining my sobriety one day at a time. Certainly might be time for another purge of the RSS feeds, just to keep me out of temptation's way. :)

I wonder if the Business Roundtable or the Employers and Manufacturers Association would be happy with finding they've hired a member of RAM?

Probably not, but if my memory serves neither the EMA or BRT does all their policy work in-house. And I certainly hope an organisation that provides advocacy…

right side of my bullshit allergy

Hope you're stocked up on antihysterics then, 'cause the season's starting...

if Chris Trotter really wants to get into a blog-feud

It could simply be that he's wrongly assessed that he needs a blog-feud to kick-start his blog; God knows the blogosphere needs more…

I think it's inaccurate to describe the Greens as "hard-out lefty", single-dimension left/right paradigm isn't a great fit for Green politics, you really need to include the liberal/authoritarian dimensions as well.

Fair point. Thanks.

Paul,

When I'm incorrect, I convert fairly quickly when presented with facts... :)

Me too, but…

So, lets say you're correct that he hasnt gone more (I said feral before, that was unfair), lets say 'extreme' because of lack of comments... do you have an alternative explanation or do you not agree with the observation at all?

I'm not really sure I'm down with the observation…

When I'm incorrect, I convert fairly quickly when presented with facts... :)

But that's not, I don't think, the point Craig. It's his conversion that's bizarre; from hard-out lefty to hard-out righty. It's been so rapid, he's even been unable to align what he does 9 – 5 to fit with his new found faith. He must be in such turmoil!

I…

Yes, unseemly – unseemly to have converted so far and so quickly. Not however, unseemly that he might have a view different from mine, your's or even his employer's.

Or naive.

But that's not, I don't think, the point Craig. It's his conversion that's bizarre; from hard-out lefty to hard-out righty. It's been so rapid, he's even been unable to align what he does 9 – 5 to fit with his new found faith. He must be in such turmoil!

*blink*…

Maybe I'm projecting some of my own issues (ego?)into this.... I dont feel inclined to send him questions or alternative viewpoints if they are not going up on the site... He's always answered mine well and convincingly when…

But they haven't, which is all that they ever ask of their members' employers – you're welcome to sack people who breach the terms of their contracts, but you're not allowed to do it out-of-hand and without due process.

Mattew's very succinctly put the point I wanted to make (plus…

I agree totally.... I was just wondering if lack of calmness was a side effect of not getting contrary feedback (of a rational nature, not the wingnut variety)....

I'm going to call bullshit on that, Fletcher, because there is a contact link on the sidebar of No Right Turn. And…

I call it bizarre .

Well, I think the Greens and ACT are rather weird, but I'm sure they feel exactly the same about we Tories. There's also a school of thought that anyone who seeks political power is exactly the kind of person who shouldn't be allowed to have…

What strikes me is is how you can attend at Green Party AGM in June, and then contrive to number 10 on the Act party list a little over 10 weeks later. Fascinating.

And what is the Act Party up to? Stirring up a situation ripe for a nice bit…

I'm fairly sure I/S was calmer at the previous election.

I agree totally.... I was just wondering if lack of calmness was a side effect of not getting contrary feedback (of a rational nature, not the wingnut variety).... or if in fact it might have been an intentional 'persona' taken…

if it were some more amenable political party said request might have been seen more favourably.

That last bit didn't strike me as a very clever thing to say.

No, it's not especially clever, but it's also not terribly relevant. He didn't ask, he just suddenly got announced as an…

And a counter question to the EPMU — do they think it's unreasonable to expect a trade union to be, well, at least as scrupulous about its employment practices as the companies that employ its members. I guess we will see how it all washes out in the Employment Court,…

What strikes me is is how you can attend at Green Party AGM in June, and then contrive to number 10 on the Act party list a little over 10 weeks later. Fascinating.

I call it bizarre .

At the moment we have a few, contradictory details and a lot…

No-one is suggesting that he doesn't have a democratic right to stand for Parliament. It's whether he has the right to ignore the provision in the collective employment agreement under which he works

We-ll, firstly he's only announced his intention to run so far AFAIK.

Secondly I heard (Andrew Little?) on…

Whaleoil playing victim again? Surely not.

I think I might have said to Mikey that Slater's father was embarrassed by his weird behaviour.

So, does that make Whaleoil "Mr Slater's parrot" ? Don't worry, I'll get me coat...

I'm inclined to agree with Prog-Blog, who, when confronted by a reprimand from Idiot Savant for not calling Winston peters to account responded inter alia

Pete: I feel a small grain of sympathy — as I said up thread, Idiot/Savant can (in my view) be shrill and pompous, and having…

If you took a big national or international company, they're unlikely to shut down their whole business because one project ran over.

What they do is to set up a separate company "New Kiwi Rd Building" that can be left to go bust if it all goes wrong. A sensible…

I'm inclined to agree with Prog-Blog, who, when confronted by a reprimand from Idiot Savant for not calling Winston…

Cameron Slater's rant is completely hilarious:

Oh, for fuck's sake... Cameron Slater is an attention junkie, and people who really should know better are quite happy to oblige (and perhaps need a fix of their own — righteous moral indignation as virtual P). Anyone considered the possibility that if the…

On the contrary, toll roads are user-pays. Abstracting away the cost of road use via borrowing (especially pernicious), taxes and rates creates a distortion. Now, you might argue it's a good distortion, but it's still a distortion.

The distortion I refer to is that under a freely-available-alternative model of road…

Craig, it's my understanding that this is why the EPMU is in mediation with Tan.

Note also that, in accordance with accepted protocols, the EPMU has not commented publicly about…

Mostly they were balanced and civil, much like here.... and when a few started to become a bit nasty, I understood why he decided to turn them off....

But frankly, I'm dissapointed in what's happened to his site since then....

Since turning comments off,…

For this to work you need articulate readers, which he has – but I suspect I/S's readers are also of a pretty high caliber. He could try it – it might work.

I/S did enable comments for quite a while, but found that some posters were voicing bile that would…

He genuinely believes that ACT will protect workers rights, the environment, ethical foreign policy, and reduce crime.

I'm fairly sure Roger Douglas did and does believe the same thing, quite sincerely, from my knowledge of the man. As opposed to the "Fuck You I've Got Mine" wing of the party…

Oh, with the Tan ACT conversion, I've talked to him and can assure readers here that his sentiments are sincere. He genuinely believes that ACT will protect workers rights, the environment, ethical foreign policy, and reduce crime.

I've known Shawn since I met him at a Green AGM four years…

Hope you don't mind if I point people at one of those posts, Russell: http://jafapete.wordpress.com/2008/08/26/memo-to-epmu-what-to-do/

__"Absent any other factors, I would tend to…

I'm of the opinion that most sites would be better without comments, frankly. Reading them is usually a complete waste of time, and detracts attention from the article in question. If you have a response, get a blog and write your arguments out well, rather than scrawling them down.

Andrew…

Oh, with the Tan ACT conversion, I've talked to him and can assure readers here that his sentiments are sincere. He genuinely believes that ACT will protect workers rights, the environment, ethical foreign policy, and reduce crime.

I'm not awfully surprised. The jump from hard left to hard right is…

Workers of the world unite – Support comrade tan!

geez, another quick switch, now he's joined the wobblies ticket ....

Everything is a distortion. Only believers in the doctrine of the Perfect Market think otherwise.

I've never quite got round to having this argument with someone who cares, but it has always struck me that the free market naturally tends toward monopoly and price fixing, rather than introducing competition, reducing…

I don't think I've heard anyone actually challenge someone to a fight since...umm...Standard 2?

Anyway, I'm sure you and Mikey could take him...

Idiot/Savant blog has not allowed comment for a long time so consquently I only read it every couple of days

Thank god. He shut them off before it became a sewer – not an easy choice, and I detect a hint of resentment when he talks about commenters on other…

English and Key would rather National looks confused than deceptive.

Hard to say. I have good reason to believe that the broadband policy was pulled out of their asses: they announced it and tried to make the numbers work afterwards.

Which isn't to say Labour hasn't done the same thing…

Cameron Slater's rant is completely hilarious:

I'm devastated.

Workers of the world unite – Support comrade tan!

You're enjoying this, aren't you?

. . . I’ll just do what I hould have done long ago and remove any links to Russell Brown from my site and never post a link to any more of his drivellings ever again. I will now also place you and you…

yet again, the public is left with the impression that National's actual policies are a mystery to its own spokespeople

Yet again, I'm left with the impression that National's actual policies are quite well known to its own spokespeople.

Either they have no idea what their policies are (which I…

Frankly, National would be well advised to sort out what its own policy on the issue is before it goes writing Labour's.

Yet another example of National's policy being significantly under-developed. I'm prepared to accept that they'll develop it further but this is precisely this kind situation, and I'm assuming…

the point of road tolls (if you are committed to ensuring a free alternative) is distortion!

On the contrary, toll roads are user-pays. Abstracting away the cost of road use via borrowing (especially pernicious), taxes and rates creates a distortion. Now, you might argue it's a good distortion, but it's…

Certainly there is a rumour that tickets for some bus systems barely cover the cost of ticketing (especially in lost time with people faffing round for change).

And…

Completely off topic, but RB I was wondering if you'd read/heard of Whaleoil's latest rant? Seems his knickers are in quite the twist...who'd have though he listens to the b?

I've got your back, I say we roll with a PA posse, wild west style!

Whaleoil playing victim again? Surely…

Even if they didn't sign a deal, would a government really leave a road in a semi-built condition? I don't believe so – they'd have to step in and finish it whatever the contract said.

I think if the contract doesn't state that the government will pick it up, there…

His calling of Chris while slightly over the top seems soundly based so it will be interesting to see how CT, who has been sheltered from criticsm before he came ablogging will react

Well, to be honest, any pundit with a grain of self-awareness or intellectual honesty has written things…

I'd go further and say introduce congestion charging in the CBD (including Parnell, Newmarket and Ponsonby) and put the toll gates back on the Harbour Bridge.

With a well-funded and effective public transport system in place I presume? I would agree at that point.

I've got your back, I say we roll with a PA posse, wild west style!

Despite a strong left wing tendency he is prepared to call things as he sees them and he would go to the top of my list if he allowed comment

I think s/he'd end up spending half his day answering sensible comments, and the other half deleting offensive ones. Seeing…

it's damn easy being green, as long I don't have to make any sacrifices, or be inconvenienced, or pay the cost.

so true. it will be interesting to see, as fuel prices start to drop again, whether those who 'fled' to public/alternative transport will stay there.

Can National categorically promise that it will not sign a deal whereby the government has to pay out any part of the road building costs in the event that the project goes bankrupt?

Even if they didn't sign a deal, would a government really leave a road in a semi-built…

Idiot/Savant blog has not allowed comment for a long time so consquently I only read it every couple of days
Despite a strong left wing tendency he is prepared to call things as he sees them and he would go to the…

Some of these questions, of course, would be just as tricky for Labour to answer — which makes them all the more important to ask.

And if you're of a suitably masochistic bent, you can listen to Bill English and Michael Cullen making a damn good case for [[http://www.radionz.co.nz/__data/assets/audio_item/0004/1709446/mnr-20080826-0735-Labour_And_National_Largely_Agree_on_Road_Tolls-m048.asxl|rhetorical dodgeball…