Daniel Davies of the D-Squared Digest reviews the bidding on the economic history of lighthouses and the famous Coase/Samuelson controversy about public goods. Yes, lighthouses were provided by private entrepreneurs, not by public agencies. But the payments from shipowners were imposed by law, not negotiated, and the system didn’t work very well. Score one for the interventionist side.
I’ve been wondering who on the Web was writing as clearly and entertainingly about microeconomics as Brad DeLong does about macro. Question answered. [Thanks to Electrolite for the link.]