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Unformatted text preview: Transaction and Conformity Costs Collective action imposes costs on participants. What are transaction costs ? Example? What are conformity costs ? Example? 3 Principles of Institutional Design What mechanisms influence the choices of others? What role does majority rule play in institutional design? Delegation and the concerns of agency loss ? Representative Government Competing forms of representative government. Explain the difference between a republic and a democracy. Why do politicians behave as they do? The Activities of Government Explain the difference between private goods and collective goods ? What are negative externalities and how are they the business of government? What advantages does the government possess?...
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