Lettuce Again, and Lumber
The Answer Is Transaction Costs
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Introduction
Mike Munger: Lettuce sold by the head makes no sense. He says many fruits and vegetables of similar costs are sold by weight, not by the unit. When it is costly to transact, institutions matter and it's costly to transact., he writes. MUNGER: If you go to a home supply store like Lowe's or Home Depot, they have bundles that are broken because consumers prefer to buy by the piece instead of by the bundle.
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