Animal abuse: a meat market externality

The Daily Mail covered a story on the sale of cat and dog meat in Indonesia. The trade has officially been banned but the ban has not been succesfully enforced on the market covered in the article. Cats and dogs are killed in plain view of the public, including children, and the methods used are devastating.

1. Animal abuse is an externality of the meat industry. Explain.
2. Do you think a ban on dog and cat meat will root out animal abuse related to meat consumption?
3. Can you think of other options to deal with animal abuse in the meat industry, besides a ban?

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Thinking rationally

I am happy to see that the EdExcel specification puts the neo-classical assumption that men is rational to question. My textbook mentions three reasons why men may not behave rational: social norms, habits, and weak computational skills. It does not cover that people may not end up with a rational decision because of empathetic considerations.

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In this post, I focus on subsidies. The author of my textbook uses the model of supply and demand to analyse the effect of a subsidy on both supply and demand. He takes the perspective of a subsidy that falls to the supplier. But not all subsidies fall to suppliers, subsidies like housing benefit or subsidy on solar panels fall to buyers. I wondered if an analysis from the perspective of the buyer would give another result, all other things equal.

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