Are Transaction Costs Really Just Human Distance
About this episode
The episode connects Adam Smith's moral psychology to transaction costs, emphasizing the importance of understanding others in market interactions.
Send us Fan Mail We connect Adam Smith’s moral psychology to the modern idea of transaction costs and argue that the biggest frictions in markets start with the cost of understanding other people. We show how sympathy, propriety, self command, and reputation turn separate perspectives into workable cooperation and why justice is the real precondition for a stable commercial order. • why transaction costs always exist and why institutions matter when exchange is costly • a brief hi...
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Host: Michael Munger
More episodes of The Answer Is Transaction Costs
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