Friday, August 25, 2006

Economics Humor

No, it is not from this site devoted to economics humor, but a true story!

Yesterday I joined a group of cyclists for a 50 miler in the local state park.

During summer months the park charges $7.00(?) per car from 10:00-4:30. Our ride started at 4:00 pm so for those doing the entire ride (there were shorter options), we were expected to pay the $7.00.

While no one wants to pay, I figure that any park (and especially one of this size and grandeur--it is the largest in NY State) needs money to operate and given the utility I get from the park (remember for much of year they do not charge anything), when I do pay, I definitely fell that I still have a positive consumer surplus (another good economic word!)

Notice the important fact that only cars must pay--if you come in on foot (or bike) you do not need to pay. Oh and did I mention that there is a parking area just outside of the park.

Sure enough, several of our group yesterday made the purely rational decision of parking their vehicles and riding their bikes into the park, thus avoiding the fees.

Which is the classic "free rider problem". (Groan...lol)

2 comments:

Rich said...

That was terrible.

Daniel said...

"(and especially one of this size and grandeur--it is the largest in NY State)"

Isn't the Adirondack State Park larger?