That Fire Department Story

by Ramesh Ponnuru

Some additional thoughts from Tyler Cowen:

[T]his is a government-run fire department and thus the story is not much of a moral reductio on the market.  Arguably a private company would behave the same way, sometimes, but it ‘s odd to claim that government failure reminds you market failure is possible and so let’s damn the market.  By the way, markets do pretty well at setting up schemes with a penalty for late payment; that’s how my mortgage works.