There was a lot of incremental building from that insight through the seventies and eighties. It's part and parcel of what we were talking about before, that that economist, usela, and other economists as well,. They see somethingn the world that seemed kind of puzzling. In another example, that would be the work that a that benben cline did and others on a vertical integration. Why is it that a firm might buy a supplier or supply its own stuff? Wouldn't it be better to let the market place produce that at a competitive price, and then you would just buy it in the open market place?
Economist and author David Henderson talks about his book (co-authored with Steve Globerman) The Essential UCLA School of Economics with EconTalk host Russ Roberts. Much of the conversation focuses on the work of Armen Alchian and Harold Demsetz, who both saw economics as a powerful tool for understanding human behavior and how the world works.