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1) residents of Bloomington must pay $2.00 per bag for garbage pick up and  $1.00 per bag for yard waste. Would you expect to see more or less trash around  houses in Bloomington compared to other cities with no trash fees? Refers to incentives—principle number 4, people respond to incentives Responding rationally, we would it expect it to have more trash 2) Recycled items are picked up at no charge, but only if they are sorted properly  into two categories –paper and cardboard, and glass and plastic. Is recycling  free? What effect does the zero pick up fee have on recycling?  Increasing the incentive to recycle What effect does the sorting requirement have?  But takes up someone’s time Which dominates?  Horserace b/w both Who’s time is presumed to be less valuable—residents or trash workers? Residents bc they have to take the time to sort it
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This note was uploaded on 11/09/2011 for the course ECON-E 201 taught by Professor Olson during the Spring '10 term at Indiana.

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notes1 -...

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