Everyday Economic Errors (Again)

It’s basic economics, but it bears repeating. When exchange is voluntary, it’s not exploitation.

This idea has implications for the Common Law doctrine of unconscionability, for instance. Like Esau selling his birthright for a cup of stew, contractual terms can’t be “lopsided” if value is subjective.

Also featured in today’s lesson is Ben Powell’s excellent contribution to the economics of labor in the under-developed world.

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