EconTalk

Joel Waldfogel of the Wharton School of Business talks about the idea in his new book, The Tyranny of Markets: Why You Can't Always Get What You Want. He argues that when fixed costs are large, markets don't necessarily give people what they want and that, analogous to the political process, you can be hurt as the number of people with preferences that differ from yours gets larger. Host Russ Roberts challenges Waldfogel's claim that these phenomena are widespread and argues that in many cases, markets ultimately solve these problems. They discuss the amount of variety in newspapers, radio, and airline travel, along with how economics generally looks at fixed costs and consumer sovereignty.

Arnold Kling of EconLog talks with EconTalk host Russ Roberts about the economics of health care and his book, A Crisis of Abundance: Rethinking How We Pay for Health Care. Kling discusses whether we get what we pay for when we spend money on health care, why health care isn't like cars, and why health care insurance isn't really insurance. The conversation closes with a discussion of innovation in America's health care system and why America is so unlike everywhere else.

Bruce Yandle of Clemson University and George Mason University's Mercatus Center looks at the tragedy of the commons and the various ways that people have avoided the overuse of resources that are held in common. Examples discussed include fisheries, roads, rivers and the air. Yandle talks with EconTalk host Russ Roberts about the historical use of norms, cooperative ventures such as incorporating a river, the common law, and top-down command-and-control regulation to reduce air and water pollution.

Ian Ayres of Yale University Law School talks about the ideas in his new book, Super Crunchers: Why Thinking-by-Numbers Is the New Way to Be Smart. Ayres argues for the power of data and analysis over more traditional decision-making methods using judgment and intuition. He talks with EconTalk host Russ Roberts about predicting the quality of wine based on climate and rainfall, the increasing use of randomized data in the world of business, the use of evidence and information in medicine rather than the judgment of your doctor, and whether concealed handguns or car protection devices such as LoJack reduce the crime rate. The podcast closes with a postscript by Roberts challenging the use of sophisticated statistical techniques to analyze complex systems.

Author Robert Frank of Cornell University talks about economic education and his recent book, The Economic Naturalist. Frank argues that the traditional way of teaching economics via graphs and equations often fails to make any impression on students. In this conversation with host Russ Roberts, Frank outlines an alternative approach from his new book, where students find interesting questions and enigmas from everyday life. They then try to explain them using the economic way of thinking. Frank and Roberts discuss a number of the enigmas and speculate on the future of economics and education. The topics discussed include tuxedos vs. wedding dresses, the level of civility (or lack thereof) in New York City, the difference between vending machines for soda and newspapers, the tragedy of the commons, and the economics of love.

Thomas McCraw of Harvard University discusses Joseph Schumpeter's concept of creative destruction, innovation, and business strategy in economics. They explore Schumpeter's impact on Harvard Business School, his unique perspectives on capitalism and competition, and the evolution of economics teaching towards mathematical proficiency.

Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about when market failure can be improved by government intervention. After discussing the evolution of economic thinking about externalities and public goods, the conversation turns to the case for government's role in promoting competition via antitrust regulation. Boudreaux argues that the origins of antitrust had nothing to do with protecting consumers from greedy monopolists. The source of political demand for antitrust regulation came from competitors looking for relief from more successful rivals.

Mike Munger, of Duke University, and EconTalk host Russ Roberts clean up some loose ends from their previous conversation on recycling, move on to talk about the idea of buying local to reduce one's carbon footprint and then talk about the idea of peak oil. They close the conversation with the Rick Ankiel story and the implications for the Barry Bonds saga.

Richard Epstein, of the University of Chicago and Stanford's Hoover Institution, makes the case that many current zoning restrictions are essentially "takings" and property owners should receive compensation for the lost value of their land. He also discusses the Kelo case and the political economy of the regulation of land.

Economics professor Tyler Cowen discusses using incentives in daily life to make better decisions. Topics include parenting strategies, the economics of dentistry, favorite art museums, navigating tourist experiences in Morocco, and challenges in education and academia.