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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. More

Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero … all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Trust in me

By Megan McArdle
Dec 4 2007, 10:38 AM ET Comment

I agree with Ryan Avent: this is lunatic.

There are interesting economic questions to be asked about Los Angeles’ plan to switch from an “honor system” to turnstiles on public transit. For which system is the expected revenue take larger? (This depends on the extent to which random checks act as a deterrent to would-be free riders). Also, for a system struggling to establish itself as a principle part of the transportation network, are there other advantages to the honor system? It may act as a means of price discrimination (if the expected value of fare-dodging is lower than fare-paying) under which expected revenue is maximized. Or a lengthy initial honor system period (or free period) could encourage riders to build their commutes around transit, such that when a more rigorous turnstile system is adopted, their transit demand is fairly inelastic and they keep riding.

Of course, the New York Times largely downplays these questions, instead going to Joel Kotkin, who can always be counted upon to deliver a baseless anti-urban assertion:

Some saw the move as another sign of the shifting ecology of Los Angeles.

“Unfortunately, as L.A. gets to be more urban, it has these breakdowns of trust that happen in big cities,” said Joel Kotkin, a Los Angeles resident and author of “The City: A Global History.” “It’s the flip side of all the good things.”




It's not that Joel Kotkin is wrong--anyone who's lived in any two places of varying size knows that as urban aggregations get larger, politeness and trust go down. But LA was already well above the size where the trust problems kick in; the honor system was presumably a reaction to some other factor--perhaps the cost of turnstile maintenance was too high, or perhaps LA simply wanted to get people off the streets by any means necessary. It seems silly to speculate that the switch has anything to do with some change in LA's underlying trust supply.

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