Another great example of government's attempt to intervene in the market. Home Secretary Jacqui Smith encourages police to make public the identities of convicted offenders in local newspaper.The tactics is designed to use the threat of public humiliation to deter men from using prostitutes. [Daily Mail 19/11/2008]
Many of you know, that prostitution is recognised as a demerit good. Will this intervention reduce market failure, thus improve social welfare? Comment below please.
For BBC article "Police plan kerb-crawling crackdown" click here.
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