A reductio ad absurdum takes the principles of a doctrine, applies them exactly as their creators did only to an entirely different subject and with horrendous results, and thus shows what absurd conclusions are logically compatible with the original thesis. The entire article applies the tenets of the Chicago law and economics tradition, as adumbrated by two of its most distinguished practitio...

Do societies choose inefficient policies and institutions, in contrast to what would be suggested by a reasoning extending the Coase Theorem to politics? Do societies choose inefficient policies and institutions because of differences in the beliefs and ideologies of their peoples or leaders? Or are inefficiencies in politics and economics the outcome of social and distributional conflicts? Thi...

for valuable discussions and suggestions, and especially Kim Border for pointing us to the right duality results necessary in the proof of part B of our proposition. Abstract We use a generalized version of the Myerson-Satterthwaite theorem to study ineeciencies in bilateral bargaining over trade of an indivisible good, where there is two sided private information on the valuations. We show tha...

This brief review discussion raises additional regulatory ideas to those offered by 2017 Nobel Prize winning economist Richard Thaler, and philosophically pragmatically argues that his of the award was more political than economic, especially in terms legislation followed. The article then uses work from other economists, such as Coase, Friedman, Arrow, theorize total there are at least four di...