Chapter 13: The black market and the silver screen: economics in The Third Man
The classic noir film The Third Man tells a story of a staged death, an over-inquisitive friend and a hopeless lover, in the dark world of postwar Vienna. It is also an excellent demonstration of the effects of price controls and rationing, and of the unpleasant consequences of the resulting black markets. The chapter shows how we can understand a character's actions using economic insights. More generally, the economics of government price controls and coupon rationing are explored and it is suggested that The Third Man provides a vivid illustration of their impact.
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