This post relates to the following Keystone Economic Principles:
4. Economic systems influence choices.
and
5. Incentives produce “predictable” responses.
I'm thinking this a good time to start a new category for certain stories, and I'll it dedicate to Claude Rain's character in Casablanca, Captain Renault. Really, is it news to find out that rent-seeking takes place in regulated markets? Incentives produce predictable responses; and economic systems (and institutions) are about setting up the incentives.
Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money]
Croupier: Your winnings, sir.
Captain Renault: [sotto voce] Oh, thank you very much.
Today's nominee is this story from The Wall Street Journal.
I know I've missed a lot of other candidates recently. I'll try to do better.
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