EH.Net Mailing List Archive: HES

> the MI problem that  
> the whole is greater than the sizzling sum of its  
> parts.   
> Roger Sandilands  
  
If the whole is greater than the parts, then it is  
because of positive externalities.  How is this a  
problem for MI?  As Carl Menger showed in his  
Principles of Economics, an exchange of goods  
increases the marginal utility of both parties.  In  
addition, the trade can also generate positive  
externalities that benefit society (or negative ones).  
 This benefit (or loss) does not change the fact of  
the individual motivation of each actor to engage in  
the trade.  Externalities do not contradict  
biologically independent thought and feeling.  
  
Fred Foldvary