Saving “the Market” out of Cambridge: “Backward-bending Labor Supply”
Q1. How likely is your taste for “Hersey Kiss ball” to increase as you take more? Q2. How consistent would your taste for “Irish potatoes” be time after time? Q3. How often would you measure the value of a product in terms of “the Irish meat”? Q4. How ready are you to work for longer hours at a lower wage? Q5. How often do you take a piece of cake and a nap at the same time? My guesses might be as good as the guesses of you who are not established economists such as Paul Samuelson, William Nordhaus, Gregory Mankiw, Paul Krugman…. and Robin Wells Let’s check out some realities. No.1. “The product” is supposed to be unique and independent from all the other goods and services. The market denies taking any substitutive product out of indefinitely many into consideration. The product is fixed in the first place. Don’t when in the market even think about a single substitute across products. No.2. “The market” is conceived only for the defined time p...