All You Voluntary Exchanges Are Just

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The problem is it's one of those things that once you explained people say oh that's simple and it is but I wanted to be able to give some economic intuition to it. The interesting question is how many only semi-voluntary transactions will you tolerate when you consider all the incentives and the effects down the road. So I really am drawn to this idea that people have romantic including myself have romantic ideals about how the world should work even if it doesn't always work that way.

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.