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 harms 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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