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The Devil Went Down to Grievance: Tuh, Taxes, and HOAs

The Answer Is Transaction Costs

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Transaction Costs, Enforcement, and Homeowners Associations

This chapter discusses transaction costs when the enforcer is also a party to a contract, using the example of Tuh and a plumber. It explores the challenges of excluding someone from a decision, negotiations costs, hold up problems, ex post-recontracting by enforcement agencies, and the impact of Homeowners Associations on neighborhood home values.

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