Intermediate Microeconomics and Its Application 11th Edition by Walter Nicholson,Christopher Snyder

Exercise 1

Antiscalping laws are just one example of a wide variety of laws that prevent individuals from undertaking voluntary transactions. Other examples include banning the sale of certain drugs, making it illegal to sell one's vote in an election, or forbidding the selling of human organs. One reason often given for precluding certain voluntary transactions is that such transactions may harm third parties. Is that a good reason for banning such transactions? Does the possibility for harmful third-party effects seem to explain the various examples mentioned here? If not, why are such transactions banned?