by Cesar Hidalgo · 1 Jun 2015 · 242pp · 68,019 words
ways in which people organize to deal with commercial interactions. The origins of transaction cost theory can be traced back to a 1937 paper by Ronald Coase, “The Nature of the Firm.”4 As a young scholar, Coase realized that the descriptions of the economy that were prevalent at the time tended
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talking about the cost of links is not simple, and it makes sense only when we define links narrowly enough. Oliver Williamson, a student of Ronald Coase, understood that commercial links come in different sizes. He wrote extensively about the connection between the cost of firm-to-firm interactions and the institutions
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not to thank them. During the summer of 2013 I wrote what became Chapters 6 and 7 at Voltage. I also studied the ideas of Ronald Coase and Oliver Williamson there. This set the foundation for what became Part III. In the fall of 2013 this book was still unfinished, but my
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they can afford. Yet, even firms with infinitely deep pockets will at some point bump into a finite knowledge carrying capacity, which (in agreement with Ronald Coase’s theory of the firm, which we will review later in this chapter) will be expressed in the price difference between doing an activity internally
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in Transaction Cost Economics: A Review and Assessment,” Journal of Law, Economics, and Organization 11, no. 2 (1995): 335–361. 5. This story comes from Ronald Coase, “The Institutional Structure of Production,” American Economic Review 82, no. 4 (1992): 713–719. 6. For those who are not familiar with the quote, it
by William Davies · 11 May 2015 · 317pp · 87,566 words
. Arguably, it was a turning point for the project of neoliberalism. The paper that was discussed that evening was the work of the British economist Ronald Coase, then of the University of Virginia. Coase always resisted the iconic status that Stigler and others were keen to bestow upon him. His career had
by John Cassidy · 10 Nov 2009 · 545pp · 137,789 words
professorship, retaining his fellowship at King’s. Thereafter, he retreated to his rooms and books, emerging rarely. In 1960, a year after Pigou’s death, Ronald Coase, a conservatively inclined British economist who had moved to the University of Chicago, questioned whether the presence of spillovers justified government intervention. In a paper
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securities issued by Citron, Bob City College classical economics new Clayton Antitrust Act (1914) climate change Clinton, Bill CLSA Emerging Markets CNBC television network Coase, Ronald Coase theorem Cobden, Richard Coca-Cola Corporation Cohen, Jonathan collateralized debt obligations (CDOs) collateralized mortgage obligations (CMOs) Columbia Broadcasting System (CBS) Columbia University Earth Institute Columbine
by Fredrik Erixon and Bjorn Weigel · 3 Oct 2016 · 504pp · 126,835 words
. And to understand the mechanics of failure we need first to understand the firm and why it exists. There is no better starting point than Ronald Coase, the Nobel laureate in economics who rebelled against “blackboard economics” and made the firm the center of economic inquiry. Coase started from a simple, almost
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efficiency rather than contestable innovation, and generally create markets with managed competition, we need to go back to the basics of industrial organization, and especially Ronald Coase. As companies grew bigger, global, and fragmented they changed their habits but not their character. They still operate, for want of a better word, on
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markets to a far greater degree than small firms. Their FDI is a vehicle for raising productivity and prosperity in many parts of the world. Ronald Coase’s simple idea helps us to understand how concentration in recent decades has gone up – and progressively reduced the space for market experimentation and contestability
by Grace Blakeley · 11 Mar 2024 · 371pp · 137,268 words
? And how can we resist this planning in our workplaces? We’ll turn to these questions over the course of this chapter. Black Box Businesses Ronald Coase was a Nobel Prize–winning economist best remembered for providing an explanation as to why businesses were necessary under capitalism. This might seem like a
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impediment to the functioning of the free market. Kenneth J. Arrow and Frank H. Hahn, General Competitive Analysis (San Francisco: Holden-Day, 1971), 1. 51. Ronald Coase, “The Nature of the Firm,” Economica 4, no. 16 (1937). 52. Ferreras, Firms as Political Entities; Chamayou, The Ungovernable Society. 53. Walker, The Theory of
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and A. W. Brian Simpson,” Journal of Legal Studies 25, no. 1 (January 1996): 103–19, https://www.jstor.org/stable/724523. 58. Ibid. 59. Ronald Coase, The Nature of the Firm: Origins, Evolution, and Development (New York: Oxford University Press, 1993). 60. Grant M. Hayden and Matthew T. Bodie, Reconstructing the
by Diane Coyle · 14 Jan 2020 · 384pp · 108,414 words
. There is an influential alternative way of thinking about externalities in general and the special case of public goods in particular. This approach, associated with Ronald Coase, helped tilt policy in the direction of market solutions to market failures such as externalities and public goods. Coase pointed out that in theory externalities
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: A Modern Approach, 9th ed., W. W. Norton. Classics Kenneth Arrow (1951), Social Choice and Individual Values, Wiley. Ronald Coase (1960), “The Problem of Social Cost,” Journal of Law and Economics 3: 1–44. Ronald Coase (1937), “The Nature of the Firm,” Economica 4: 386–405. Friedrich A. Hayek (1945), “The Use of Knowledge
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Edward Lopez (2012), Madmen, Intellectuals, and Academic Scribblers: The Economic Engine of Political Change, Stanford University Press, chapters 1–3. On Externalities and Public Goods Ronald Coase (1991), Nobel Prize lecture, “The Institutional Structure of Production,” http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/1991/coase-lecture.html
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. Ronald Coase (1974), “The Lighthouse in Economics,” Journal of Law and Economics 17, no. 2 (October): 357–376. Tyler Cowen, “Public Goods,” http://www.econlib.org/library/
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to the tragedy of the commons. One was to assign private property rights over common resources. The externality would thus be “internalized,” in the way Ronald Coase had identified (see chapter 1), and the market could operate to deliver the efficient outcome (box 4.1). (Although recall that the idea this—or
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the context of businesses as alternative institutional structures for producing private goods. As already noted, microeconomic theory starts with a single producer; but one of Ronald Coase’s famous papers asked why firms exist at all if we think markets are so much more efficient than the planned or administered use of
by Richard H. Thaler · 10 May 2015 · 500pp · 145,005 words
shouting contest, especially with a federal judge! The biggest fight was about something called the Coase theorem. The Coase theorem is named for its inventor, Ronald Coase, who had been a faculty member at University of Chicago Law School for many years. The theorem can be easily stated: in the absence of
by Daniel Yergin · 14 May 2011 · 1,373pp · 300,577 words
channeling thinkers they had never heard of in the first place. THE “SCRIBBLER IN CHIEF” In this case, there was even a “scribbler in chief”—Ronald Coase. Yet Coase would have seemed a most unlikely candidate for this post. Born in 1910, he suffered as a child from “weakness” in his legs
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the hall.27 And that it is how, in the little green room on the last day in Kyoto, “markets” became embedded in climate change. Ronald Coase’s theorem, and John Dales’s refining of it into a “market for pollution rights,” had become international policy. And, if one were looking for
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64. Scanpix/Sipa Press 65. George Bush Presidential Library and Museum 66. Photo provided by the office of Representative Edward Markey 67. Courtesy of the Ronald Coase Institute, Photographer: David Joel 68. Bjorn Sigurdson/AFP/Getty Images 69. Artwork by William J. Hennessy Jr./ CourtroomArt.com 70. Courtesy: Jimmy Carter Library 71
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’s Immoral to Buy the Right to Pollute,” op-ed, New York Times, December 17, 1997; interview with Fred Krupp. 2 Ronald Coase autobiography, Nobel Prize Web site (“underrate your abilities”). 3 Ronald Coase, “The Problem of Social Cost,” Journal of Law and Economics, vol. 3, (1960), pp. 1–44 (“externalities”). 4 John H
by Vito Tanzi · 28 Dec 2017
economists, the earlier challenges had come mainly from conservative, or libertarian, pro-market economists, such as F. A. Hayek, Milton Friedman, George Stigler, James Buchanan, Ronald Coase, Alan Peacock, and a few others, and from some politicians and philosophers, such as Barry Goldwater, Robert Nozick, and others in the United States, and
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of a crop but generate a few cases of cancer? This benefit-cost criterion is in part at the base of the argument, promoted by Ronald Coase, about how to deal with externalities. It has been increasingly used in the fields of law and economics. Coase pointed out that just because an
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who are damaged by these externalities. Alternatively, the government could impose regulations to eliminate or to reduce the negative externalities. In 1960, the British economist Ronald Coase, who later earned a Nobel Prize in economics, challenged the Pigouvian view with what came to be called the Coase theorem, which has already been
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no need for the government to intervene, although the solutions might have required some arbitration. George Stigler, another Nobel Prize winner and a colleague of Ronald Coase at the University of Chicago, would refer to Coase’s intuition as an important “Eureka moment” in economics (see Stigler, 1975; Coase, 1994; Mueller, 1989
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conservative and pro-market policies. In the United States the movement was promoted by economists such as Milton Friedman, F. Hayek, George Stigler, James Buchanan, Ronald Coase, Robert Mundell, Gary Becker, Arnold Harberger, Robert Lucas, and some others. Their message was received and given a political coating and popular appeal, and was
by Alex Moazed and Nicholas L. Johnson · 30 May 2016 · 324pp · 89,875 words
to find them. In economic terms, GitHub significantly reduces transaction costs for people collaborating on software projects. The term “transaction cost,” coined by the economist Ronald Coase, refers to any cost incurred in making an exchange. Another term for it is a “coordination cost.” In essence, a transaction or coordination cost is
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case for markets over central planning, there are other important objections to the efficient markets theory to consider. This brings us to another influential economist, Ronald Coase, whom we encountered briefly in chapter 1. Coase recognized another big hole in the concept of efficient markets. If markets could coordinate economic activity efficiently
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, 1948). Subsequent quotes by Hayek are from this book. 4. Ibid. 5. Credit for this analogy goes to Microsoft senior researcher E. Glen Weyl. 6. Ronald Coase, “The Institutional Structure of Production,” in Nobel Lectures, Economics 1991-1995, ed. Torsten Persson (Hackensack, NJ: World Scientific Publishing, 1997). 7. Martin Reeves, George Stalk
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by Söderberg, Johan; Söderberg, Johan;
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