This came across my desk today, thought others might be interested.
Alex
FREE-MARKET ECONOMY ON CORAL REEFS
Market forces appear to be at work on coral reefs, where fish
that perform a cleaning service risk losing customers if they get
sloppy. Scientists studying these fish conclude that healthy
competition is sometimes important in ecology, helping to
stabilize co-operation between species.
Researchers have seen a free-market economy at work in the
interactions between cleaner wrasse and their client fish on the
reefs of Ras Muhammad, on the Red Sea coast of Egypt.
The cleaners can "cheat" in this transaction, feeding on mucus or
even the tissues of the client instead.
o Client fish regularly visit cleaning stations where the
wrasse nibble parasites from their bodies.
o Fish were less likely to visit stations where they had
previously been cheated or had to wait in a queue.
o By exercising what amounts to consumer choice, the client
fish promote healthy competition between all the cleaning
stations, and this ensures good quality service.
Although predatory client species can attack the cleaners if they
feel cheated, non-predatory clients are powerless to threaten
revenge. So their arrangement would seem doomed -- cheating
should become widespread, so long as the cleaners remove just
enough parasites to keep clients coming back for further sessions
when they get desperate. But market forces keep the cleaning
standards high.
Source: Jon Copley, "Coral Reefs Operate Free-Market Economy,"
New Scientist, April 28, 2002, and Animal Behavior (vol. 63, p
547).
--
Dr. Alexander Tabarrok
Vice President and Director of Research
The Independent Institute
100 Swan Way
Oakland, CA, 94621-1428
Tel. 510-632-1366, FAX: 510-568-6040
Email: [EMAIL PROTECTED]
