Title

The Diseconomies of Do-it-Yourself

Publication Date

3-17-2016

Abstract

I argue that, due to mistrust of markets, households engage in excessive household production and too little market exchange, primarily due to anti-market bias. “Do-It-Yourself,” commonly engaged in for the purposes of prudence, contradicts the concept of comparative advantage under the conditions of perfect markets. Imperfections in real-life markets are insufficient as an explanation for the ubiquity of household production that could plausibly be purchased in markets. The optimality conditions set forth by Becker (1965) are unlikely to hold.

Document Type

Article

Keywords

Do-It-Yourself, Behavioral Economics, Social Economics, Rational Irrationality

DOI

10.2139/ssrn.2748188

Source

SMU Cox: Other (Topic)

Language

English

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