Thursday, June 14, 2007

Free marketeers forget the 'Free' part

Over at the Indian Economy Blog, supposedly a collection of free market minded pundits, a novel solution is proposed to end the daily chickchick with the autorickshaw drivers-


"Are there any other simple solutions to this problem? One option could be peak hour rates - at times of the day when traffic moves slower than average (average is quite slow nowadays), auto-rickshaws should be allowed a premium. A premium in order to compensate for the greater strain on the resource that is driver’s time. It would be something like if you get into an auto between 8 and 11 am or 5 and 8 pm you have to pay a 20% premium on the meter fare. Implementation of this could be through fare charts like those they have in Mumbai.
.......
Remember that fair deals are far easier to implement than unfair ones - which take an extraordinary degree of policing. It is hence an expectation that cheating on the part of auto drivers will reduce in case of fair setting of prices. Of course, there will still be nothing to stop the driver from cheating, but in case of a fair deal I believe that policing should become easier which will further reduce possibility of cheating."



Of course, the truly free market solution does not occur to the gentleman- let anyone provide public transport and set fares, have no restrictions on the number of entrants or on the fares. Let the markets decide-it works in everything else. Or does public transport work under different laws of economics and human nature?

The colorful Indian language translator-
Chickchick -(intense annoyance caused by being tormented by) persistent disputation with someone or over something.

P.S.- it seems that their commenting system is not working properly.I was unable to pass their Spam-protection filter.It asks a simple maths question like- 4+8=? I was unable to pass it repeatedly, the message being -You have not passed the spambot maths challenge-! Either that or perhaps in a postmodern world even 2+2 has become relative.

Update- They have removed the math challenge. Believe me, it was a challenge trying to get 7+8=? right for twenty minutes! Nice of them.

3 comments:

Deane said...

I tried posting this in the india econ blog.. but even after they fixed the math thing, the Hash whatever doesnt seem to work. So here Goes :


As outlandish as it may seem, an obvious solution is to do away with the pricing system.

i have been in Delhi a few times and i was appalled with how the 'auto rickshaws' work there. sometimes the rickshaw wallah refuse to take you somewhere because its not feasible with the rates set, then there were times i walked on long in the the middle of the night when no autos were available.

You should take a leaf from Sri Lanka's book, which imparts almost 0 regulation on auto rickshaws (what we call 3-wheelers) the prices are negotiated on the spot, and because there is competition (no licenses) the prices remain as low as feasible. you can get three-wheelers at any hour of the night provided you can negotiate the ride for a good amount.. and they rarely say they cant go anywhere. and for some reason the drivers also seem nicer.. :)

now it may be that i've been stuck at the wrong place at the wrong time, and i did find the system working for the most part. but generally i find the situation here in SL much much better. sure you get screwed over occasionally, but that's just like any other business.

i'm also told Delhi has a cap on the maximum number of autos it allows which inevitable leads to corruption and bullying by the authorities...it seems the license-raj in india is still very much alive. :)



Original comment date- 2007-06-15. See here- http://libertynewscentral.blogspot.com/2012/01/drudgery-of-importing-haloscan-comments.html

libertynewscentral said...

Deane,
I think they have removed the math challenge, so you can comment there now.

If what you are saying is right then I envy those in Sri Lanka, and of course it proves my point about free markets working better than any 'expert' mandated solution.


Original comment date- 2007-06-15. See here- http://libertynewscentral.blogspot.com/2012/01/drudgery-of-importing-haloscan-comments.html

libertynewscentral said...

Deane,
I think they have removed the math challenge, so you can comment there now.

If what you are saying is right then I envy those in Sri Lanka, and of course it proves my point about free markets working better than any 'expert' mandated solution.


Original comment date- 2007-06-15. See here- http://libertynewscentral.blogspot.com/2012/01/drudgery-of-importing-haloscan-comments.html