Comments (2)

• Ron

  Wow...this is great! I've been wanting to read Manuel Ayau's book. It's been on my wish list for a while. Thanks for putting it online!

  Published: July 28, 2008 3:27 PM

• Andras Ludanyi

  Great books, I love "Not a Zero-Sum Game", by Manuel Ayau, but I believe there is a little error in that book, the part where the 10% import tariff (TV sets) rise the price of the imported TV. First I believe in retail there is no difference between the price of locally produced and imported goods (if they are the same quality, etc.) and that all prices are maximized (marginal price), so if a TV marginal price is $30, all TV (same quality) will cost $30 tax or no tax, tariff or no tariff because that is the price the market (consumers) are willing to pay. But because the less profit for the producer (or importer) there will be less TV sets available for sale, so the tariff actually limit TV sales, this leads to less available TV sets in the stores and if the demand stay constant, prices will go up but this would be a new marginal price, a price for consumers who are willing to pay the higher price to get the TV set. But this increase is not because of the tariff it is because the smaller supply (due smaller profit = higher risk smaller investment in import). I believe this should be reconsidered by the author because the rest of the book is great.

  Published: July 29, 2008 11:46 AM