IIb - much higher If we increase transaction costs may...

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IIb. Bandwidth would be chaos without government controlling/imposing structure Gov’t can benefit by selling it Taking good and nationalizing it Institutional structure Transactional costs – i.e. when switching books, professor must change material taught, test questions, etc. Transaction costs to changing constitution very high Must pay property taxes, participate in government, etc. Conformity costs: *example: increase by forcing people into military because costs are so
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Unformatted text preview: much higher If we increase transaction costs, may lower conformity costs Institutions designed to deal with transaction costs and overcome conformity costs • Tried to raise transaction costs in order to avoid putting troops in harm’s way Ability to control agendas, institutions give power to individual Not as simple as just “majority rule” – what are alternatives? You are at the whim of the elected/appointed group given power...
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