There is another lesson in the motorway jam, re. regulation v. the
free market. When the traffic jam is caused by a lane closure, the
market separates into the most and least competitive drivers. The
least competitive get into the lane that is still open as soon as
possible, joining the long queue. The most competitive jump
the queue, making it even longer for everyone else, staying as
long as possible in the lane that is going to close. Then along
comes a truck driver who believes all drivers have equal rights, with
the power to enforce them. He crawls down the fast lane at the
same speed as the slow one, regulating the market with a ten ton
truck.
Clive George
Senior Research Fellow
Institute for Development Policy and Management
The University of Manchester
Oxford Road
Manchester M13 9GH
UK
Tel.: (44) 161 275 2800
Fax.: (44) 161 273 8829
E-mail: [log in to unmask]
See the IDPM home page on:
http://www.man.ac.uk/idpm/
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