In some states, hunting licenses are allocated by lottery; if you want a license, you send in your name to enter the lottery. If the purpose of the system is to ensure that those who want to hunt the most get a chance to do so, what are the flaws of this system? How would the situation improve if people who won licenses were allowed to sell them to others?
2006-10-10 20:07:44 · 2 answers · asked by Anonymous in Social Science ➔ Economics
I don't know if I agree with it, but under the capitalist system the argument is that those that want to hunt the most would be willing to pay the most. As a free lottery, or even a low priced lottery, your demand is artificially higher than it would be at the actual price of this limited supply. As you aren't using a capitalist pricing system to decide, you decide with an arbitrary system - the lottery. You don't maximize benefits as the winners are arbitrary and not the people that would enjoy it the most.
Local hunting is by lottery, and I see this a lot. Girlfriends and wives, etc. enter the lottery (artificially higher demand) . If they win they have to tag along (Not the people that maximize enjoyment). But if their husband wins they stay home. i.e. They really didn't want to go in the first place, just a loop hole. So because of the system you have people with a chance that really don't want it, and people that really want it have less of a chance.
Giving ownership with the rights to sell it is a model used in things like pollution. Limit the right to pollute, but allow people to sell their limited right if they wish. Here it is just the right to kill animals. So, this increases overall benefit, as someone that really wants to hunt can now offer the price they want. And if the person with the license is likely to sell it if someone wants it more than them and offers the right price. Problem still is, you arbitrarily gave them the license in a lottery.
2006-10-10 21:54:15 · answer #1 · answered by JuanB 7 · 1⤊ 0⤋
In my state they do a lottery but it isn't based on need for finances. The reason they have the lottery here is to control hunting in certain areas and for certain types of animals.
I'm not sure if they control sales of the licenses but they can easily see if they are being sold by monitoring who is doing the actual hunting.
2006-10-11 03:17:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋