Tuesday, December 1, 2009

Why can’t there be markets in everything?

Airlines have recently added charges for bag fees and extra leg room in bulkhead or the exit rows. I have one more request for a market relating to air flight, although it does not need to increase airline revenue.

I think people should have to pay for leaning their seat back, and those behind them should be compensated. I have a strong preference for the person in front of me not leaning their seat back, and am more than willing to trade my upright seat for theirs. I’m sure there are people who prefer having their reclined seat and the seat in front of them reclined. If the airlines sort people correctly, there would really only need to be transfer payments between a few people who have their seat reclined and the seat in front of them upright to those people who have their seat upright and the seat in front of them reclined. There can be some sort of market when you buy your ticket where you give your price for having the seat in front of you upright and your price for having your seat upright. Then the airline picks the price to clear the market, and transfer payments ensue.

I recognize airlines probably are not going to do this, I’m not sure their customers will get it. I’m not sure how other people feel about the choice between (upright,upright) and (reclined,reclined) but if it is close to 50/50, they could easily just make one side of the plane upright and the other reclined. As it stands now, there is a transfer of utility from selfish people to good honest altruists like me who keeps his seat up.

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