Idle chit chat with Ryan G

Ryan is a friend of mine from Mason who is currently studying graduate Econ at Oxford. This is a conversation we had a few minutes ago.

Ryan: I am writing a paper on market failure, government intervention, Coase Theorem, etc...
Now I need to do an applied section where I walk through a real case any good ideas? I would do the obvious, environemnt, or education, but I will be doing seperate papers on those two topics next.
me: tragedy of the commons is the most frequent real market failure. so overfishing?
Ryan: yeah, thought of that
me: logging on public lands?
Ryan: hmmm, ok, that would be interesting
me: information assymetry is also good. You could do healthcare.
Ryan: That is a whole nother paper. I am already at 10 pages, I had to leave out dynamic incapacities, and asymentric info otherwise it would have taken me 15 -20 pages just to define the different problems
I think I may do a paper on Health care later, so hopefully I can deal with those problems then.
me: dynamic incapacities, is that like, how electricty gets overconsumed because it's so hard to have live pricing? Google isn't turning up much.
Ryan: i think so, i dunno. He defined it, but we didn't really spend much time on it
and I didn't know where to research for it My other thought were to do big game animals again
I wrote a paper on that a while ago.
Or public financing of sports stadiums which I also did a couple years ago

me: I thought public financing of sports was more of a public choice problem instead of a market failure. It's actually a market success that stadiums don't get built

Ryan: public choice deals with market failures. lol, true.

The usualy arguments for government intervention in markets is market failure

me: so the pub choice argument is that the lack of stadiums is a market failure, so spend public funds on them?

Ryan: Yes, becasue they give positive externalities to the city

such as increased jobs, city pride etc....

things the private world won't take into account

public choice would say rent seeking and government inefficiency would result so the stadium should be financed privately

me: I wonder how you would monetize city pride as a variable

Ryan: hard to

We still don't know too much about dynamic incapacities, so if you know anything, please leave a comment.