Middlemen: From Mancgere to Amazon
The Answer Is Transaction Costs
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The Negative Railroad
David Frum: Are middlemen actually good for market systems or are they just parasites? He says the answer depends on what is the counterfactual. If A and B have found each other anyway at a cost of less than $1, then maybe you should object if they would not have found eachother that everyone is actually better off by quite a bit, he says. The example of thecounterfactual is important to an essay that Frederick Bastiat wrote called "The Negative Railroad"
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