The Negative Effects of Coordination Failures

The way we economists think about the world is often in terms of coordination failures or institutional failures at the scale of our large shared institutions. The place where we get worried about the net effect of choices is when we see these larger institutions as defective and inefficient. So, in addition to having broken institution at the level of say a monopoly that, you know, is the only one who can sell something we could have unusually broken kind of persuasion persuasive power that some people have such that their ability to persuade people deviates from this past.