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Mankiw makes no sense whatsoever. From the beginning, the textbook example alone is flawed in that it illustrates that "competition" doesn't help lower prices since its not like the purchasers of the textbooks, students, have any choice in the matter. Same for most government services.
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I'm glad you decided to set the record straight!
Bhoberman is now following The Typepad Team
Nov 4, 2010