Understanding basic economics is crucial for all libertarians. No other field offers as clear and irrefutable a case for liberty. Indeed, statism draws much of its support from the public’s flawed understanding of economics. Even libertarians are occasionally led astray by flawed economic reasoning. A friend recently brought a book designed to combat such flaws to my attention: Geoffrey E. Wood’s Fifty Economic Fallacies Exposed.
The rental rates on iTunes are fairly well established. You pay most for a new HD release, a little less for an older movie, and less yet for non-HD.
But one movie on iTunes rents for more than double the usual, highest established rate. What’s going on here? Should we send in a “rogue economist,” perhaps, like the dudes of Freakonomics fame?
Well, they would know, since it’s their movie. Freakonomics: The Movie, that is being rented on iTunes for more than double the regular rental price. And, though this may be just the kind of puzzle Levitt and Dubner like to fix upon [Keep reading…]