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- 2. Resource Immobility
- 3. Inadequate Information
- Solution: Local governments can offer incentives for people who move to their city (for example, one city in the US offered a one-time $1000 cash payment to those wo moved to their city)
- Solution: The government can institute public disclosure laws which require that any changes made to products should be reported.
- (2) . . . But sir, won't you get PR to inform the public of the changes?
- (2) No, no, no. My old place said they'll have me back soon, and I won't be able to find anything better. We can't leave Philly.
- (1) So we're slated to make the changes in production next month. It might lower the quality some, but production costs will be much lower.
- (3) There's no reason to cause unnecessary fuss. We're still selling the same thing, after all. I think this meeting is over.
- (1) Richard, you've been out of work for five months already. Isn't it time we thought about moving?
- Solution: The local government can institute and enforce laws for customer-only parking, and deploy the local police force to direct traffic and parking.
- 4. Negative Externality
- (1) Excuse me, where do you source your cheese from? I don't eat anything from Bigco. Farms
- Okay, this is getting RIDICULOUS! Just because the mosque has huge gatherings every Friday doesn't mean the overflow has to take over MY parking lot!
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