Econ 101: 'How to sell a dollar for more than a dollar'

From the perspective of a congressman, is a lobbyist merely Santa Claus in a pin-striped suit?

In this amusing video, economics professor David Zetland, demonstrates how lobbyists essentially outbid one another  for a dollar.  But do you think any of the lobbyists realize that there’s an economic name for their shenanigans? It’s called an all-pay auction and guess what! The only way to win in an all-pay auction is not to bid at all. Actually, Zetland tartly notes, the politicians win. Always.

[youtubevid id=”QN_kt97w7Wg”]

H/T The Marginal Revolution:  “How to Sell a Dollar for More than a Dollar”

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One thought on “Econ 101: 'How to sell a dollar for more than a dollar'

  1. Pingback: Tweets that mention Nancy Miller - The New Wall St. – Econ 101: ‘How to sell a dollar for more than a dollar’ - True/Slant -- Topsy.com

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