Re: Paul D. on this year's Nobel--especially V. Smith

[Mason Clark <masonc@xxxxxxxxxxxxx>]

At 10/16/02, you wrote:
>Vernon Smith is right to some extent. The problem in California is
>that the market was deregulated between utilities and retailers but
>not between retailers and consumers.

The deregulation law was passed based on the promise that the price
to consumers would go *down*.  It was *not* irrational to cap that
price.  What went wrong was the producers' grab for money any
way they could get it, ignoring the trap set by the (rational) ultimate
price limit.  It was the free market at work and the lights went out.

       Mason C (Californian)