Difference between revisions of "Where Private Investment Fails/Replace the invisible hand"
From Critiques Of Libertarianism
(Created page with "<!-- you can have any number of categories here --> Category:Bennett Harrison Category:Market Failure Category:Economics 101 Category:Institutions [[Category:Inst...") |
|||
| Line 6: | Line 6: | ||
[[Category:Institutional Economics]] | [[Category:Institutional Economics]] | ||
[[Category:Deregulation]] | [[Category:Deregulation]] | ||
| + | [[Category:Invisible Hand]] | ||
{{Quote | {{Quote | ||
| text = Williamson borrowed from Coase the concept of "transactions costs" the idea that the market price in any transaction may fail to incorporate the full costs to the seller or buyer because of the very conditions of exchange. In particular, whenever there is uncertainty or the need for long-term relationships, the parties to a transaction are unlikely to be able to write contracts complete enough to cover all the contingencies or hidden costs. | | text = Williamson borrowed from Coase the concept of "transactions costs" the idea that the market price in any transaction may fail to incorporate the full costs to the seller or buyer because of the very conditions of exchange. In particular, whenever there is uncertainty or the need for long-term relationships, the parties to a transaction are unlikely to be able to write contracts complete enough to cover all the contingencies or hidden costs. | ||
