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November 09, 2007

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Presh Talwalkar

This is a very interesting topic. I agree that an individual is ultimately responsible for making bad decisions. But here's another perspective for the sake of discussion: individuals have to make hundreds of decisions a day without time for research--hence they should be protected from companies.

For instance, I buy about 20-30 items during a regular trip to the supermarket. I rely on rules of thumbs like "organic is good" to help me make quicker decisions. Companies are organized and have the incentive to exploit consumers.

In other words, IF the market does not produce a socially optimal outcome, then there is a justification for a government to limit misleading behavior or ban it altogether (like trans fats).

Of course, this is a big if.

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Interesting write up. I'm not into the whole Social Media thing...yet.
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