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March 13, 2008
Overlooking the Obvious Question
My former student Dan Alban points me to a WaPo article on sidewalk food vendors in DC. Apparently a long time wholesale supplier of vendors is facing some new competiton from Zipcar entrepreneur Gabe Klein. The article details the back and forth between WG, a firm that has held a large share of the market for years, and Klein. While it is amusing to know that WG's owners refer to Klein as the backpack guy and Klein refers to WG as the hot dog guys (because their carts peddle hot dogs instead of more modern fare such as hummus) the article completely misses an obvious question--why has WG held such a large market share for so many years? Could it be that, just maybe, there are some provisions in DC's complicated regulartory regime that created frankfurter monopoly? That's my bet, but the article contains only the vaguest hints. Posted by E. Frank Stephenson at 02:40 PM in Economics
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The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
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