Many countries ban guns, transactional sex, and porn. Some countries require women to wear burgha.

    There is a similarity between those.

    Each is like arm race.

    Transactional sex allow richer men to bid higher for women.

    No burqa allow prettier women to show beauty and hence got better mates.

    Gun like in US also make others keep up with the Jones. In indonesia learning judo is enough. In US you probably want to have guns too because robbers will have guns.

    So basically consensual arrangements between individuals cause adverse effect on other individuals.

    We usually call this externalities. Like pollution.

    But not all externalities are market failure.

    Someone coming up with better ai or better phone will of course disrupt businesses for other phone manufacturers.

    Usually such things are called pecuniary externalities. It's market behave as it should be. Inferior products or services are driven out by superior products, services or offers.

    But guns? Arm race looks zero sum game. Even US don't just allow anyone to walk around with machine guns or nukes.

    Not wearing burqa or transactional sex? That seems more like normal economic function instead of arm race.

    Some men offer more money some women accept. Some women wear sexy clothes attract men with money. That's like someone build better phones and get more customers.

    How would economists analyze this?

    Which one cause dead weight loss? Which one is kardol Hicks efficient?

    Do government prohibition on guns, transactional sex, and porn fix market failure?
    byu/Ill_Pangolin_6818 inAskEconomics



    Posted by Ill_Pangolin_6818

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