Tuesday, February 17, 2015

Trenton McCarthy, chapter 2, question 6

The most interesting thing in this chapter was the "free rider" concept. In the example of the black rhinos, people derive utility for conserving these endangered species. However this could possibly be part of the problem. As those organizations spend tons of money, time, and effort protecting these animals, we just sit around doing nothing, letting those people do all the work. Same goes for safari companies. These companies depend on the money of wealthy tourists who desire to see rare wildlife. However if one of those tourist companies spends a lot of money on conservation to increase the value of their product (safari), other companies of the same area and category will simply "free ride" on that one comapny's dedication. This only causes disadvantage for the companies trying their best to fix the problem. Poachers are the only one's now with clear incentive to kill and wipe out the entire species. Incentives do matter; they play a enormous role in a person's basic economical thinking.

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