Please view or review the class lectures( The file attached) on economic institutions and the role of markets and read the following news articles about the problem of supplying electricity in California and Texas:
Report details causes of recent California rolling blackouts (Links to an external site.) (Links to an external site.): Supply was down while demand was up, which is mathematically inconvenient.Deep in the heart of Texas’ collapsing power grid (Links to an external site.): Everything in Texas went wrong at once.Then imagine that you had been tasked to advise the residents of California and Texas about the best ways to tackle the problems mentioned in the articles. What institutional arrangements would be most appropriate? Do not be dogmatic. It is a complex question so different institutions might be more appropriate for different aspects of it. For example, for what issues is speed of decision critical? Which decisions, if any, should be made by experts, or even by computers? On what issues should all citizens be consulted and be asked for their consent? Would a spike in price have prevented the blackouts? Why or why not?
As always, I will consider superficial answers off the top of your head and showing no critical thinking skill to be worthless. You could imagine, if you would like, that a prospective employer asked my reference about your suitability for a job, and I showed them your answer to this assignment as supporting evidence for what performance they could expect from you. It is pretty easy to tell whether one has made a serious effort or not.