An exchange between Perry and I:
>>> If you found it plausible that investments become more and more
>>> attractive with time (over some range), by offering higher and higher
>>> returns, then you should find it plausible that the returns would be
>>> higher if investments were postponed due to property rights.
>
>> >You wouldn't always expect that -- indeed, you often would not expect
>> >that. For instance, if I am investing in a radio broadcast license (we
>> >will ignore whether such licensing is desirable right now), the cost
>> >of the license these days is generally nicely proportional to the
>> >expectations on the part of bidders of their likely return on
>> >investment.
>>
>> You've completely lost me here. Care to rephrase?
>
>The cost of a radio station depends on how much money it makes, just
>like almost any other investment.
What does that have to do with the change in rate of return if investment
were delayed?
Robin Hanson
hanson@econ.berkeley.edu http://hanson.berkeley.edu/
RWJF Health Policy Scholar, Sch. of Public Health 510-643-1884
140 Warren Hall, UC Berkeley, CA 94720-7360 FAX: 510-643-8614
Received on Tue Mar 3 22:34:26 1998
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