The Answer Is Transaction Costs
Michael Munger
"The real price of everything is the toil and trouble of acquiring it." -Adam Smith (WoN, Bk I, Chapter 5)In which the Knower of Important Things shows how transaction costs explain literally everything. Plus TWEJ, and answers to letters.If YOU have questions, submit them to our email at taitc.email@gmail.com There are two kinds of episodes here: 1. For the most part, episodes June-August are weekly, short (<20 mins), and address a few topics. 2. Episodes September-May are longer (1 hour), and monthly, with an interview with a guest.Finally, a quick note: This podcast is NOT for Stacy Hockett. He wanted you to know that.....
Episodes
Mentioned books
Aug 6, 2024 • 21min
We Get Letters!
Delve into the economics of beach parking and beer packaging! Discover why bottles often cost more than cans and explore innovative parking solutions that enhance resource management. Unpack the concept of transaction costs and their impact on consumer choices. Enjoy humorous anecdotes that illustrate economic principles and the myths around money distribution. Plus, hear about a successful music festival parking system and its economic implications. It’s a fun mix of insights and laughs wrapped around real-world examples!
Jul 30, 2024 • 23min
Shibumi! Legit Idea, or Shady Dealings?
Dive into the fascinating world of Shibumi's sunshades, where legal battles over patents spark debates on intellectual property. Discover the evolution of shade solutions and the surprising stakes behind defending innovative designs. The conversation shifts to optimizing airline boarding and the complexities of efficient systems. Explore Income Share Agreements as an alternative to traditional student loans, highlighting their pros and cons. Get ready to challenge your views on innovation and economic incentives in education.
Jul 23, 2024 • 26min
Slavery, Indentured Servitude, and the Problem of Financing Education
The podcast delves into how modern financial systems have eradicated historical practices such as indentured servitude and apprenticeship. It explores the evolution of borrowing against future earnings and how financial institutions streamlined processes resembling slavery. The conversation also addresses the inefficiencies in the current educational system and the need for better financial instruments to optimize funding for underprivileged children.
Jul 16, 2024 • 27min
Bees, Oranges, and Externalities: The Answer is Transaction Costs
Exploring the relationship between beekeepers and orange grove owners, focusing on transaction costs and externalities. Historical examples of positive externalities, hive collapse impacts, and the use of bearer bonds in international trade. An entertaining mix of economics and real-world examples.
Jul 9, 2024 • 20min
Parking Lots, Transaction Costs of the Price Mechanism, and the Pork Pie Fedora Rogue
Explore the contrasting parking dynamics at Wrightsville Beach, where an orderly lot faces chaotic challenges, highlighting how transaction costs shape user experiences. The story of a man in a pork pie fedora adds a quirky twist as he disrupts social norms by buying parking spaces from beachgoers. Delve into the humor around resource allocation and the complexities of consumer decision-making. The podcast also reflects on personal preferences, online shopping, and the hidden costs we often overlook in our daily choices.
Jul 2, 2024 • 15min
Monkey See, Monkey App! And IP Walks Into a Bar....
Learn how rhesus macaques adapt after Hurricane Maria, forming new social connections. Delve into theories on property rights and resource management. Explore a humorous scenario with intellectual property rights personified. Discover the impact of treating reservations like commodities on platforms like Monkey App.
Jun 25, 2024 • 17min
Baseball, Dollar Dogs, Apple Pie and Transaction Costs
Discover why baseball stadiums limit $1 hot dogs during promotional nights! It's not just about sales, but enhancing fan experience and crowd dynamics. A lively discussion ensues around the impact of such promotions on attendance. Explore how transaction costs fit into the pricing of event tickets and the changing landscape of work due to automation and AI. Plus, enjoy a sprinkle of dad humor and price comparisons for apple pies to keep things tasty!
4 snips
Jun 18, 2024 • 24min
Dam Shame: It's not easy being government
The discussion highlights the nuanced failures of both markets and governments, with transaction costs at the forefront. It emphasizes how information asymmetries and incentive issues complicate governance. Delving into public choice theory, the conversation critiques the assumption of Pareto optimality within government actions. The hosts argue that flawed consumer behavior is exacerbated in voting populations. Finally, there's a fascinating exploration of Parkinson's Law, illustrating the gap between civil service numbers and productivity.
Jun 11, 2024 • 23min
Corner Crossing Conundrum: Trespassing, Airspace, and Property Rights
What happens when crossing a corner of private land leads to legal troubles? The discussion dives into corner crossing and the clash between public access and private rights. Explore fascinating legal precedents regarding airspace, particularly cases like Hinman v. Pacific Air and Jacques v. Steenberg Homes. Unpack the nuances of trespass laws and the complexity of implied licenses for accessing public land. Plus, enjoy a sprinkle of humor with economics jokes woven throughout the legal debates!
Jun 4, 2024 • 17min
The Riddle is Transaction Costs: That's What the Money is For!
Exploring the fascinating world of transaction costs, the podcast delves into how a $100 bill can solve a town's debt crisis. From haggling for cars to the nuances of pricing strategies, the discussion includes insights on wealth dynamics, liquidity, and the impact of information in reducing transaction costs.
