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Intro Econ 2: Markets & Pickles

Planet Money Summer School

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What Can Go Wrong in a Market?

The information is too disperse across society for it to be able to be aggregated together into one person. But what we do have in markets is prices. Ad prices plays the role of helping us aggregate that information. Price acts as a signal. So if we, if we view the food bank market as this elegant solution to the problems of distribution they had, and it did work beautifully. We can think about it on the other side,. where perhaps there's one seller and many, many different buyers.

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