Economics 486
The Economics of
Organization
Spring
2004
Mondays 2-4:30
Monteith 311
R. N. Langlois
322 Monteith X63472
Office
hours MW 9-12 and 1-2 or by appointment
Assignment 1
In
The Economic Institutions of Capitalism, Williamson early on describes
transaction costs as "frictions" in the economic system (pp. 18-19).
This is fact a rather typical way to discuss transaction costs. But is it in
fact what Williamson and others mean in practice? Your assignment is to answer this question by examining the work
of Coase
and Williamson. Compare their conceptions of transaction
costs (or "costs of using the price system," as Coase puts it). To what extent are their conceptions
consistent with the idea of friction? In what ways not? You might find helpful
the article by Dahlman
on the reading list.
Extra
credit to anyone who can find for me the page on which Williamson refers to the
concept of "mundane" transaction costs.
Due: February 9.
