Wednesday, November 5, 2008

property rights

Harold Demsetz:
The allegation is that even perfectly competetive markets fail to achieve efficiency. But, this reasoning generally fails to take account of the fact that the provision of a market (for the side effect) is itself a valuable and costly service.
In asking the implications of the nonexistence of some markets, we seem to have fogotten the cost of providing market services or their government equivalent.

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