Some of the fascinating principles it captures:
- Cars contribute negative externalities (congestion, pollution) such that the free market equilibrium is not efficient
- Governing bodies can reduce the impact of the negative externality by taxing or, in this case, reducing the supply of cars
- Trade costs go up when there is policing and border checks
- Profit margins tend to go down with more competition.
- People will take advantage of new arbitrage opportunities
This article reminds me of my fabulous year in Egypt and why what I learned there got me so interested in studying economics
