Source: EconLog
by Sam Branthoover
“Imagine you live in Gotham City, where there is rampant crime. This ceaseless villainy is not only normatively bad, but also drives real estate prices down. Then Batman shows up, reducing said crime. Do the people of Gotham celebrate? Probably! After all, Batman made the city safer (and raised the value of their homes). … The introduction of the Caped Crusader has changed the ‘optimal’ level of crime from ‘mafia boss running every street’ to ‘avoid committing premeditated crimes at night.’ … we’re left to conclude that Batman is GCPD’s most desired hire, but that he simply refuses the salary. … In a sense, there is a market failure: the people of Gotham would gladly pay Batman to perform his services, but because he rejects their payment, he is artificially reducing the value of the services provided, even if he would perform the same services upon payment rendered.” (10/30/25)