Efficiency in the abstract consumer-surplus-plus-producer-surplus framework is not nearly as well-defined, exact or measurable as mainstream economists claim, because it depends on contextual factors—available options, knowledge of willingness to pay, time span, reflection—and behavioral economics shows inconsistent, regretted choices, weakness of will, and information limits; so the right response to 'it's not efficient' can be 'so what,' even while supply-and-demand and surplus remain useful for revealing the costs of interventions.
factualpending
Speaker
Dan KleinEvidence Quote
“on efficiency if you think of it in this abstract kind of supply and demand framework of consumers and producer surplus I just think it's not nearly as really well-defined or exact or definite as they make out”
Created: 6/15/2026, 9:36:53 AM
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