Agreed, Jiro is making this error. They postulates a situation where people pay (they say “willing to pay,” but clearly is not talking about consumer surplus) 50, but 20 is enough. What Jiro and readers should wonder is why people are paying so much more than necessary to get what they want, and how Jiro knows this but the people in the actual situation do not.
Not exactly. The assertion is that you dont have to go all the way to equilibrium to capture most of the benefit while preventing most of the repugnant results of equilibrium.
Did not interpret it as such, but perhaps because offered interpretation makes little sense.
Market approaches equilibrium by progressively adding marginal suppliers (whether suppliers really enter in sequential fashion irrelevant; is point about opportunity cost). Marginal suppliers are suppliers least interested in providing service; means they have better alternatives. Basically, for a given price, who more likely to sell organ? Person with better opportunities or person with worse opportunities? Plainly latter. So logically, latter will be “snapped up” by buyers before former (where “before” means relative to equilibrium; is again not temporal point).
Therefore can not move at all toward equilibrium to capture most of benefit without also allowing most of repugnance. Most of producer surplus located where most of repugnance is. To get benefit without repugnance, would need price floor, i.e. would need to prevent movement to equilibrium. Goal would be to select portion of sellers closest to equilibrium point, not farthest from it.
Agreed, Jiro is making this error. They postulates a situation where people pay (they say “willing to pay,” but clearly is not talking about consumer surplus) 50, but 20 is enough. What Jiro and readers should wonder is why people are paying so much more than necessary to get what they want, and how Jiro knows this but the people in the actual situation do not.
Not exactly. The assertion is that you dont have to go all the way to equilibrium to capture most of the benefit while preventing most of the repugnant results of equilibrium.
Did not interpret it as such, but perhaps because offered interpretation makes little sense.
Market approaches equilibrium by progressively adding marginal suppliers (whether suppliers really enter in sequential fashion irrelevant; is point about opportunity cost). Marginal suppliers are suppliers least interested in providing service; means they have better alternatives. Basically, for a given price, who more likely to sell organ? Person with better opportunities or person with worse opportunities? Plainly latter. So logically, latter will be “snapped up” by buyers before former (where “before” means relative to equilibrium; is again not temporal point).
Therefore can not move at all toward equilibrium to capture most of benefit without also allowing most of repugnance. Most of producer surplus located where most of repugnance is. To get benefit without repugnance, would need price floor, i.e. would need to prevent movement to equilibrium. Goal would be to select portion of sellers closest to equilibrium point, not farthest from it.