On, OoruLabs, India's premier urban issues podcast, Sathya Sankaran speaks with Anupam Manur of Takshashila Institution on government setting the prices of various goods and services.

The conversation discusses the issue of price control in transportation and the effectiveness of government intervention. It explores the role of price in affordability and the complexity of pricing in transportation. The importance of price as an incentive and signal is highlighted, emphasizing the fairness of the pricing system. The consequences of government price fixing and the lack of competition in transportation are examined. The government's role in water pricing and the influence of lobbying in price fixing are also discussed. The unintended consequences of price fixing are addressed. The conversation explores the resistance to competition in various industries, such as transportation, and the role of government intervention in providing public services. It delves into the economic nature of water and the need for pricing and regulation. The discussion also highlights the distinction between piped water and groundwater as common goods. The importance of understanding economics and civics is emphasized as a means to promote better governance and citizen engagement.

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Takeaways

Price control in transportation can have unintended consequences and may not effectively address affordability concerns.

The pricing system acts as an incentive and signal, allowing for efficient allocation of resources.

Government price fixing is often ineffective and can hinder competition and innovation.

Competition and choice are crucial in transportation to ensure fair pricing and quality of service.

Price control in certain goods may be influenced by public perception and the perceived need for government intervention. Incumbents in the market often resist competition, but consumers benefit from increased competition.

Water is an economic good that requires pricing to cover the costs of provision.

Groundwater is a common good that requires regulation to prevent over-extraction.

Water tankers should pay for the water they extract to avoid theft from the community.

Government should play a role in providing public services, but pricing and regulation should be based on economic principles.

Understanding economics and civics is crucial for promoting better governance and citizen engagement.

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Timecodes

00:00 Introduction

01:14 The Issue of Pricing in Transportation

04:17 The Ineffectiveness of Price Fixing

06:12 The Complexity of Pricing in Transportation

07:27 The Perception of Price Control in Certain Goods

08:43 The Need for Control in Specific Goods

09:12 Understanding the Role of Price

10:08 The Importance of Price as an Incentive and Signal

11:34 The Fairness of the Pricing System

15:53 The Consequences of Government Price Fixing

23:45 The Government's Role in Water Pricing

26:57 The Influence of Lobbying in Price Fixing

28:46 The Unintended Consequences of Price Fixing

29:43 Resistance to Competition

31:24 Government Intervention in Transportation

33:05 Water as an Economic Good

36:23 Groundwater as a Common Good

38:17 Pricing and Regulation of Water

41:19 Water Tankers and Pricing

46:30 Role of Government in Water Supply

54:00 Importance of Understanding Economics and Civics

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Stock video and picture credits to various contributors on Pexels, Times of India, ted-ed. All rights belong to respective owners.

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