The Paradox of Choice by Barry Schwartz

A popular claim in modern economics (especially in its libertarian version) is that what people need to increase their own welfare is alternatives to choose between (consider the “love of variety” assumption in models of monopolistic competition). The distinguished psychologist Barry Schwartz questions the reason of this assumption:



Cap and Dividend

A few days ago I wrote a rather short post about the EU ETS (Emissions Trading System). It was a praise of the general idea of cap and trade schemes (and the EU’s one as a good example), although I mentioned two challenges remaining: inclusion of all industrial sectors in the scheme and agreement on a global system of interlinked national cap and trade schemes. But there is one more adding proposal worth mentioning: the so called “cap and dividend”. Continue reading