Rebecca Henderson and Professor Goodman discuss the role of the Free Rider Problem in large corporations’ responses to climate change. In the context of climate change, the Free Rider Problem explains why individual businesses are less willing to make decisions that benefit the climate: it would come at a cost to them but their competitors may not make the same decision. What is needed, then, is collective action on the part of many businesses. Henderson finds it strange that there hasn’t been a movement from the heads of large companies to demand climate regulation. I found this especially interesting because she seems to believe this regulation would work in their best interest, allowing them to move collectively towards a solution to climate change that would ultimately benefit them all economically. On this topic, Henderson and Professor Goodman set up a dichotomy between people who believe in climate action from an economic and a moral standpoint. What Henderson seems to conclude is that from either point of view, government regulation to benefit the environment seems entirely logical.
The other part of this conversation I found interesting was the discussion of real estate in Miami. The fact that people are buying expensive condos on land that will soon be underwater feels like one of the best examples of human shortsightedness that I can think of.