I'm shocked by how often economists misinterpret the Coase theorem. I first found this in Winners, Losers, and Microsoft, when I was editing a pre-release copy. The text had read something along the lines that Coase had shown that in the presence of clear property rights people can negotiate there way to the most efficient outcome, whatever the initial distribution of rights was.
But that is wrong! What he said was, in the presence of clear property rights and low transaction costs people can negotiate there way to the most efficient outcome, whatever the initial distribution of rights was. And Coase himself felt that the Coase theorem rarely applied -- usually transaction costs were too high to get to the efficient solution! (I think the way he put it was that "we live in a non-Cosean world.")
Nassim Nicholas Taleb's extreme risk analytics Christmas party.
Declares LewRockwell.com : "All of this means that while the government has been artificially propping up the economy and 'stimu...
Is shaping up nicely .
The language won't die, but that doesn't mean the programmers won't ! Funny quote: '"Just because a language is 50...