Where Enron Learned Economics
Published on Thu 29 May 2003
A truck driver moved to Texas and bought a donkey from an old farmer for $100. The farmer agreed to deliver the donkey the next day. The next day the farmer drove up and said, "Sorry, but I have some bad news. The donkey died."
"Well, then, just give me my money back."
"Can't do that. I went and spent it already."
"OK, then. Just unload the donkey."
"What ya gonna do with him?"
"I'm going to raffle him off."
"You can't raffle off a dead donkey!"
"Sure I can. Watch me. I just won't tell anybody he's dead."
A month later the farmer met up with the truck driver and asked, "What happened with that dead donkey?"
"I raffled him off. I sold 500 tickets at two dollars apiece and I made a profit of $898."
"Didn't anyone complain?"
"Sure, but just the guy who won. So I gave him back his two dollars."