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Success: what happens when America's food banks embrace free-market economics [pdf]

2 pointsby c_promptover 9 years ago

1 comment

c_promptover 9 years ago
tl&#x2F;dr:<p>Feeding America [1] is a network of food banks that feeds more than 46 million people. In 2005, four professors at the University of Chicago helped replace their centralized distribution system with an auction-based one, allocating &quot;shares&quot; to each bank to bid on donated food.<p>From The Week [2]:<p>&quot;Initially, there was plenty of resistance. As one food bank director told Canice Prendergast, an economist advising Feeding America, &quot;I am a socialist. That&#x27;s why I run a food bank. I don&#x27;t believe in markets. I&#x27;m not saying I won&#x27;t listen, but I am against this.&quot; But the Chicago economists managed to design a market that worked even for participants who did not believe in it. Within half a year of the auction system being introduced, 97 percent of food banks won at least one load, and the amount of food allocated from Feeding America&#x27;s headquarters rose by over 35 percent, to the delight of volunteers and donors.&quot;<p>The end result has been an improvement over the centralized scheme, whereby &quot;a lot of food rotted in places where it was not needed, while many shelves in other food banks stood empty.&quot;<p>[1] <a href="http:&#x2F;&#x2F;www.feedingamerica.org&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.feedingamerica.org&#x2F;</a><p>[2] <a href="https:&#x2F;&#x2F;theweek.com&#x2F;articles&#x2F;580341&#x2F;what-happens-when-americas-sovietstyle-food-banks-embrace-freemarket-economics" rel="nofollow">https:&#x2F;&#x2F;theweek.com&#x2F;articles&#x2F;580341&#x2F;what-happens-when-americ...</a>