Cosa: In many cases, to take, to take a never really thought about it, but in a way, no coses just saying, economics, markets work. The transaa cots ore low. But to take another example, o julian simon, who ah, we both have a great deal of a respect for his solution to the fact that airlines have an incentive to overbook. And if it turns out that too many people show up, then you can auction off the and they don't literally auction them off. They basically say, the first three people who come forward ar goin to get a free ticket. And now both parties are better. Three parties
Don Boudreaux of George Mason University and Cafe Hayek talks with EconTalk host Russ Roberts about the intellectual legacy of Ronald Coase. The conversation centers on Coase's four most important academic articles. Most of the discussion is on two of those articles, "The Nature of the Firm," which continues to influence how economists think of firms and transaction costs, and "The Problem of Social Cost," Coase's pathbreaking work on externalities.