Planet Money Summer School

Intro Econ 2: Markets & Pickles

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Jul 16, 2020
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ANECDOTE

Alaska Food Bank's Pickle Surplus

  • Susanna Morgan faced a huge pickle surplus at her Alaska food bank while craving fresh produce.
  • This mismatch exemplified the inefficiency in food distribution between regions.
INSIGHT

Markets Solve Local Knowledge Problem

  • Centrally planned economies fail due to the local knowledge problem, lacking access to dispersed information.
  • Markets solve this by using prices to communicate how much different people value goods.
ANECDOTE

Food Banks Use Fake Money Auctions

  • Tristan in New Jersey bids with fake money on food like cereal to meet local needs.
  • John in Indiana saves allowance for important items, winning auctions by bidding higher.
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