How is buying lettuce like buying lumber? Each is idiosyncratic, and has to be sorted. Imposing the sorting costs on the buyer is actually a way of price discriminating.
Clement Atlee and Winston Churchill, for the best TWEJ ever.
And a cool new letter, about using transaction costs to separate by type, when type is "private information."
Links:
You can follow Mike Munger on Twitter at @mungowitz
How is buying lettuce like buying lumber? Each is idiosyncratic, and has to be sorted. Imposing the sorting costs on the buyer is actually a way of price discriminating.
Clement Atlee and Winston Churchill, for the best TWEJ ever.
And a cool new letter, about using transaction costs to separate by type, when type is "private information."
Links:
You can follow Mike Munger on Twitter at @mungowitz