Saturday, October 15, 2011

Perverse incentives

Someone posted this video on HFBoards:

This could be used to demonstrate why the financial crisis happened. The cost of an RPG rocket seems to be at least $50 and can be as high as $500 depending on the model. In any case, a rocket is worth a lot more than a fish. The problem is, of course, that the individual firing the rocket does not bear any of the costs of firing the launcher (courtesy of the U.S. taxpayer) but receives all the benefits.

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