The Answer Is Transaction Costs cover image

Desert Town Dilemmas and the Problem of Property Rights

The Answer Is Transaction Costs

NOTE

Choosing an Arbitrary Rule over Constantly Seeking Justice

Using the example of a desert town as a pun, the speaker illustrates the challenges of regulation and antitrust laws. They advocate for rule utilitarianism, suggesting that sometimes choosing an arbitrary but efficient rule, like a stoplight despite its unfairness, is preferable to constantly seeking perfect justice. The speaker emphasizes the importance of considering the costs of living our lives as a primary factor in rule-making decisions.

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