This paper illustrates the gains from trade that are achieved when a modified price system is implemented to allocate a scarce resource, morning kindergarten slots in a public school system, instead of the first come, first served system that is currently used. Despite the fact that some parents are better off under this modified price system and none are worse off, parents responding to a survey of preferences for morning kindergarten were overwhelmingly opposed to such a system, regarding it as inappropriate and contrary to their values.
