What is good for one may not be good for everyone
2/03/2009 10:52:58 AM
This article was originally published as ‘What is good for one may not be good for everyone’ in The Morning Bulletin on 11th October 2008.
One of the least understood aspects of economics is the fallacy of composition. Imagine you’re at a football match, with Andrew Gaze sitting in front of you. You stand, to get a better view, while blocking those behind. Soon everyone is standing…and no better off. Put simply, what is good for the individual might not be good for the group. Understanding that helps you identify risks, so let’s apply it…
