Tuesday, August 21, 2007

Pigou on Steroids

Here is a proposal for a Pigovian tax on some professional baseball players:
He [J.C. Bradbury, author of The Baseball Economist] proposes that the players' union should adopt its own testing policy. The union itself would fine players who use steroids and distribute the fines among the other players—very sensible, since steroid users are imposing costs on other members of the union.
Sounds good to me.