ACKNOWLEDGMENTS I am grateful for Salim Rashid's collaboration on Chapter 4, and his permission to use our joint work in the book. I appreciate usefulcomments on earlier drafts by Dieter Helm, Nathaniel Leff, Shlomo Maital, John Pencavel, Walter Primeaux, Edward Rice, James Smith, and Aaron Wildavsky. I benefited from the opportunity to discuss some of this material at the Austrian Seminar at New York Univeristy. Stephen Moore provided excellent research assistance of many sorts. The Word Processing Center at the College of Commerce at the Unitersity of Illinois, headed by Carol Halliday, did a superb job typing the various chunks of the manuscripript. And Helen Demarest put the finishing touches on the typescript with her usual good cheer, good sense, and dedication to the job. Thank you all. Julian L. Simon Passover, 1986