Incentives aren't perfect. There's foraud there's a lot of things that go wrong in private, voluntary transactions. The grasses greener fallacy is the free lunch fallacy and the people can be different fallacy. And i'm going to defend arrow for a minute, even though i really love the nervada fallacy in demset's observation,. I think there's nothing wrong with identifying the fact that markets work imperfectly.
Economist and author David Henderson talks about his book (co-authored with Steve Globerman) The Essential UCLA School of Economics with EconTalk host Russ Roberts. Much of the conversation focuses on the work of Armen Alchian and Harold Demsetz, who both saw economics as a powerful tool for understanding human behavior and how the world works.