Why does the market for Black Rhinos create
incentives that are different than other markets? How can these incentives be changed?
The
Black Rhino market creates different incentives because the Black Rhinos are not
private property. Poachers have an
the incentive to kill and saw of the Black Rhino's horn because it is worth a
"princely sum." And when there are less Rhinos around, then the value
of their horns goes up. The incentives to kill these Rhinos can be changed by
giving the surrounding communities a new incentive to keep them around; by
making them private property. For
example, the Rhinos can be a great tourist attraction; so if the community
begins to make money on tourists who come to see the Rhinos, then there will be
less of an incentive to kill the Rhinos.
(Sorry for the late post again, I always have trouble connecting to the internet on time!)
Tourism is not necessarily making them private property but it does change the incentives. Your explanation of scarcity surrounding the rhino could have provided more detail about the markets inability to adjust to higher prices thus creating a "vicious cycle" but you did get the main idea.
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