5 ms·
What seems intuitively wrong as a layperson new to this about Coase's theory, is that the "surprising" collapse in prices to marginal cost "in period 1" assume
by gregw2 2mo ago
What seems intuitively wrong as a layperson new to this about Coase's theory, is that the "surprising" collapse in prices to marginal cost "in period 1" assumes that consumers have no marginal utility, and thus no price sensitivity, of consuming the good sooner rather than later.
If that fails. Coase's argument fails. No?
- efavdb 2mo agoIndeed, having a hard time thinking of anything I desire that I wouldn’t want sooner rather than later. Maybe a grave yard plot — hopefully won’t need that anytime soon.
- foolswisdom 2mo agoYeah, that's what bothered me when I read it, too.