An unusual coalition has developed at New York Times op-ed meetings – sworn enemies libertarian Tyler Cowen and socialist Paul Krugman have banded together to oppose the new NYT paywall. Cowen and Krugman could not be further apart philosophically.
An ardent believer in the esoteric “Coase Theorem”, Cowen opposes all government intervention except to enforce property rights.
He believes everything else can be “left to the market” and “rational agents will negotiate their way to the efficient frontier”. Krugman is now a behavioral economics fanatic. To Krugman, rational agents are some hypothetical ideal that is never seen in the “real world”. If people make mistakes, a government or a super-intelligent being – as Krugman believes himself to be – can make decisions on their behalf. Hence, the Nobel Prize winner thinks consumers, firms, banks, investors, in fact pretty much anybody should be pushed not nudged into making good decisions. Indeed, Krugman is writing a new book “Shove” to act as a counterpoint to the milder forms of intervention proposed by the Chicago School of Behavioral Economics.
Naturally, op-ed meetings were quite lively with these two extremists in the same virtual room via Skype. But NYT Editor Bill Keller and owner Arthur Sulzberger are looking back at those meetings with misty eyed nostalgia now Cowen and Krugman have ganged up. Both commentators are hopping mad about the paywall but for quite different reasons.
Libertarian Cowen thinks his column belongs to him and that the NYT has violated his property rights by making money from his columns without compensating him. Also, he and Alex Tabarrok have a highly successful website, Marginal Revolution, which is free. Cowen makes money from the advertising the site carries as well as from speaking gigs his fame generates. His free-up-till-now column for the NYT was another part of this business model.
Krugman has quite different motives. Most importantly, he simply wants his radical message to get out to as wide an audience as possible. A paywall might stop that. Second, Krugman is obsessed with the size of his readership. In the internal impact ratings followed at newspapers, the newspaper equivalent of Google Scholar, Krugman is number one. But the paywall might allow his archenemy George Will at the (free-after-you-register) Washington Post to leap ahead.
So, Cowen and Krugman are planning a Twitter-murder of the NYT paywall. Each will link to NYT articles in Twitter messages and send them to vast legions of loyal followers. These links are free and subvert the entire logic of the paywall. They may overwhelm traffic at the NYT. If Twitter can get rid of a dictator in Egypt, surely it can tear down a paywall.


5 comments
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April 1, 2011 at 12:58 am
Lones Smith
Cowen and Krugman are both selfish maximizers. I find it hard to believe that the NY Times has properly gauged the elasticity of demand for its e-product. Rather than screaming “Mr Sulzberger, tear down this paywall”, let us toss back at them “all the ridicule that’s fit to print” at their economic folly.
Let me start with the anagram:
NEW YORK TIMES –> MONKEYS WRITE
April 1, 2011 at 9:15 am
tim
@Lones Smith
“NEW YORK TIMES –> MONKEYS WRITE”
That may be true but I don’t need either.
The simply fact is that the NYT penalizes users of new technology with their new “paywall”. Those users will go somewhere else. I would be more than happy to pay if that had a simple weekly or month subscription rate for their service – they decided against that and I will not send them a dime.
April 1, 2011 at 11:11 am
Mort Dubois
Are these two union members? They sure are acting like it. Having a hissy fit because your employer is trying to charge for the service it provides? Unbelievable.
April 1, 2011 at 1:09 pm
anon101
check the date, guys…
April 5, 2011 at 4:26 pm
Mort Dubois
Ouch. Got me!