Packing Out Your Trash, Brown M&Ms, and $100 Bills on the Sidewalk
The Answer Is Transaction Costs
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The Importance of Transaction Cost
A stockbroker sees a $100 bill lying on the sidewalk and offers to split it with an economist. The economist says that in equilibrium, there couldn't possibly be any $100 bills lying on sidewalks. "The interesting thing about thinking in terms of transaction cost is you end up seeing explanations for things that otherwise make no sense"
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