The Answer Is Transaction Costs
"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
39 episodes since 2023
Why Bosses Don't Wear Bunny Slippers: TAITC
Ever wondered why firms exist in a market-driven economy? This month's episode promises to unravel this question by diving deep into Ronald Coase's seminal 1937 paper, "The Nature of the Firm." Join me, Mike Munger, as I reflect on our first 16...
August 27, 2024
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23:09
Price Gouging or Price Information?
Can high prices during emergencies actually save lives? Using North Carolina as an example, we dissect the economic and legal implications of these laws, exploring the ambiguities in terms like "unreasonably excessive" and the chilling ef...
August 20, 2024
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18:17
All Housing is Affordable Housing
Are housing regulations making affordable homes a pipe dream? We promise you'll gain a deeper understanding of how transaction costs and regulatory hurdles impede new housing development, frustrating both market responses and the dreams of pote...
August 13, 2024
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Season 2
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Episode 11
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24:29
We Get Letters!
What is it that beach parking lots are actually selling? Why do beer bottles cost more than cans? And just what are costs of the thing, as opposed to the costs of selling or buying the thing? Can you really separate them out?Mass MO...
August 06, 2024
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20:31
Shibumi! Legit Idea, or Shady Dealings?
You can throw shade, but can you own the idea of shade? Shibumi's sunshade has become an essential part of the coastal landscape, but that has sparked some fierce legal battles. We'll talk patents, beginning with the evolution of shade solution...
July 30, 2024
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23:17
Slavery, Indentured Servitude, and the Problem of Financing Education
Not everyone realizes that the modern financial system has enabled us to end historical practices such as indentured servitude and apprenticeship. This episode uncovers how financial systems tackled market failures and transaction costs, ...
July 23, 2024
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25:56
Bees, Oranges, and Externalities: The Answer is Transaction Costs
Bees and Valencia oranges from my family's farm in rural central Florida provide a snapshot of externalities and transaction costs. A local beekeeper wasn't just a boon for our crops but also an illustration of Arthur Pigou's theories on the di...
July 16, 2024
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26:31
Parking Lots, Transaction Costs of the Price Mechanism, and the Pork Pie Fedora Rogue
Two seemingly similar parking lots at Wrightsville Beach, North Carolina, couldn't be more different in the emergent behaviors they foster. From the orderly lines of the 85-space lot to the chaotic dynamics of the smaller 19-space circular lot,...
July 09, 2024
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20:10
Monkey See, Monkey App! And IP Walks Into a Bar....
The method of much of social science is "comparative statics." There's an amazing natura experiment going on, after Hurricane Maria changed the environment for the rhesus macaques of Cayo Santiago. Sometimes, you need a simulation to understand...
July 02, 2024
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14:44
Baseball, Dollar Dogs, Apple Pie and Transaction Costs
Why would a baseball stadium limit the number of $1 hot dogs per customer on Dollar Hot Dog Night? Find out as we work on this intriguing question posed by a curious high school student named HJ. Through the lens of transaction costs, we reveal...
June 25, 2024
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Season 2
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Episode 4
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16:30
Dam Shame: It's not easy being government
I have been interested lately in a paper Bill Keech and I were working on a decade ago, It was called "The Anatomy of Government Failure."Was
June 17, 2024
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Season 2
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Episode 3
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24:11
Corner Crossing Conundrum: Trespassing, Airspace, and Property Rights
What if crossing a mere corner of private land could land you in legal hot water? This episode tackles the thorny issue of corner crossing, where public and private lands meet at a single point, creating potential trespassing conflicts. We'll d...
June 11, 2024
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Season 2
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Episode 2
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23:18
The Riddle is Transaction Costs: That's What the Money is For!
Can a single $100 bill solve an entire town's debt crisis? This riddle is a window into transaction costs. I rely on Jeffrey Rogers Hummel's insights, adding a few thoughts of my own. And a cool letter: Ever wondered why you haggle...
June 04, 2024
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Season 2
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Episode 1
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17:15
From Commons to Coase and Beyond, With Steven Medema
What if understanding the hidden costs in every transaction could revolutionize how we see economics? Stephen Medema of Duke University opens up about his academic pivot from computational tax policy to the history of economic thought, we...
May 28, 2024
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Season 1
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Episode 27
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1:02:24
Desert Town Dilemmas and the Problem of Property Rights
We embark on a journey through the lenses of Hume, Smith, and Coase, piecing together the roles of observation and empirical study in shaping our understanding of societal conventions and moral philosophy. David Schmidtz recounts a defini...
April 30, 2024
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Season 1
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Episode 26
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1:01:55
Caldwell: Hayek's Intellectual Journey
Come along on a journey through the corridors of economic history and methodology with our esteemed guest, Bruce Caldwell from the Center for History of Political Economy at Duke University. Caldwell's personal voyage, from the nuances of...
March 26, 2024
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Season 1
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Episode 24
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1:08:32
Making Deals With Shadows: The Economics of Ransomware and Cybersecurity
The digital realm is rife with invisible threats, and this episode doesn't shy away from the gritty realities of ransomware and the burgeoning industry of cyber insurance. We tackle the conundrum: How do these defensive expenditures impact our ...
February 27, 2024
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44:53
Current Event: Smart Grids, DERs, and the Economics of Energy
Unlock the secrets of the energy market evolution with economist Professor Lynn Kiesling, who brings her expertise on transaction costs and the digital transformation of the electricity industry to our table. Our energized discussion orbits aro...
January 30, 2024
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1:12:06
The 5G Revolution, Huawei Controversy, and Global Trade Dynamics
TAITC tries to navigate the complex world of 5G, Huawei, and the telecom revolution with special guest John Pelson, author of the thought-provoking book, Wireless Wars. With Pelson's unique insights from his time as a corporate ...
December 19, 2023
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54:27
Permissionless Innovation: Unshackling Potential or Unleashing Chaos?
What limits innovation? Is that good? I talk to Adam Thierer, senior fellow at the R Street Institute, exploring the concept of permissionless innovation and its far-reaching implications. From ancient Mesopotamia to the digital revolution, we ...
November 21, 2023
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Season 1
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Episode 20
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50:54
Neutrality, Security, and Ethereum: the Future of Global Transaction Costs
Are you intrigued by the transformative potential of blockchain and Ethereum? This conversation with Ryan Berckmans, an Ethereum enthusiast and savvy investor, will unravel world that remains mysterious to most. We also reflect on ...
October 31, 2023
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Season 1
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Episode 19
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45:45
Effective Altruism and the Transaction Costs of Maximizing Expected Value
A thought-provoking conversation about Effective Altruism (EA) with technologist Ben Goldhaber, as we explore its intersections with utilitarianism and transaction costs. We'll try to navigate the tricky terrains of libertarianism and the more ...
September 26, 2023
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Season 1
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Episode 18
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45:34
Motives and Morals of Taxes, and an Homage to Bob Barker
There are three reasons to impose taxes, it seems:1. To discourage behavior "we" don't like2. To raise revenue for things "we" want 3. To achieve a pattern of social justice in the distribution of resourcesWhat does t...
August 29, 2023
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Season 1
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Episode 17
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22:45
All You Can Eat, or By the Ounce?
There are many different pricing and packaging schemes for serving food in restaurants, and they all seem to coexist. But there are some significant differences, and thinking in terms of transaction costs and adverse selection can help us under...
August 22, 2023
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Season 1
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Episode 16
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21:17
The Devil Went Down to Grievance: Tuh, Taxes, and HOAs
Are HOAs an argument for anarchy, or an example of it?Ex post recontracting as a form a of aggression, when the enforcer of contracts is also a party to the contract.And of course the TWEJSome Links:
August 15, 2023
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Season 1
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Episode 15
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17:33