does value extraction always decrease the utility of the thing being monopolized? in the troll example there are fewer crossings; the bridge gets less use, so it does decrease utility. in a modern toll system, it might be the case that restricting traffic flow allows those who do use the thing to get places faster (less traffic congestion). tolls also select such the remaining people — who can now get places faster — are exactly those whose time is “worth more”, the ones they benefit are exactly those who are able to be “most productive” with the saved time. is it plausible that an extractive toll system could increase net utility (value)?
further, the distinction you make between value capture and value extraction seems to be framed through a moral lens. IF an extractive system could increase value, could it ever be justified morally? for example, the above hypothetical toll system which increases net value: if it also redistributed the extracted value such that no individual is measurably “worse off” from it (say, it distributes the tolls as a UBI across everyone in the region), could it be morally just even though the value extraction is happening by someone other than the creator?
It is plausible that congestion pricing could make the bridge more efficient; whether it’s morally justifiable comes down to who the money goes to/how the money is used.
If the money gathered from the toll/congestion pricing goes to the Troll, it’s bad, even if it makes the bridge more efficient. It encourages more trolls, and the fact that the Troll accidentally increased the utility of the bridge shouldn’t count in its favor.
If the money goes to the engineer, her investors, or the towns themselves, then, rather than being extracted by an external entity, the value is captured by those within the system. People are incentivized to produce more good things (build more bridges, so to speak).
does value extraction always decrease the utility of the thing being monopolized? in the troll example there are fewer crossings; the bridge gets less use, so it does decrease utility. in a modern toll system, it might be the case that restricting traffic flow allows those who do use the thing to get places faster (less traffic congestion). tolls also select such the remaining people — who can now get places faster — are exactly those whose time is “worth more”, the ones they benefit are exactly those who are able to be “most productive” with the saved time. is it plausible that an extractive toll system could increase net utility (value)?
further, the distinction you make between value capture and value extraction seems to be framed through a moral lens. IF an extractive system could increase value, could it ever be justified morally? for example, the above hypothetical toll system which increases net value: if it also redistributed the extracted value such that no individual is measurably “worse off” from it (say, it distributes the tolls as a UBI across everyone in the region), could it be morally just even though the value extraction is happening by someone other than the creator?
It is plausible that congestion pricing could make the bridge more efficient; whether it’s morally justifiable comes down to who the money goes to/how the money is used.
If the money gathered from the toll/congestion pricing goes to the Troll, it’s bad, even if it makes the bridge more efficient. It encourages more trolls, and the fact that the Troll accidentally increased the utility of the bridge shouldn’t count in its favor.
If the money goes to the engineer, her investors, or the towns themselves, then, rather than being extracted by an external entity, the value is captured by those within the system. People are incentivized to produce more good things (build more bridges, so to speak).