The Disparity in Batonus in Economics

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Tony's Taco Truck has a sign on the side saying, today's special three tacos per five dollars and there's a drink special. One bottle of water for a thousand dollars or three bottles for 2,500. For me, not having access to that exchange means that I'll die of thirst. So power in economics is an enormous disparity in batonus. And if that happens anytime when you have monopoly power, but we worry about it, not so much about monopoly power.

Mike Munger of Duke University talks with EconTalk host Russ Roberts about the psychology, sociology, and economics of buying and selling. Why are different transactions that seemingly make both parties better off frowned on and often made illegal? In theory, all voluntary transactions should make both parties better off. But Munger argues that some transactions are more voluntary than others. Munger lists the attributes of a truly voluntary transaction, what he calls a euvoluntary transaction and argues that when transactions are not euvoluntary, they may be outlawed or seen as immoral. Related issues that are discussed include price gouging after a natural disaster, blackmail, sales of human organs, and the employment of low-wage workers.