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by allenz
2969 days ago
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> Once they figure it out, they'll price this person as a person, and he won't be able to swing it as dramatically. Ronald Coase, of Coase theorem fame, believed that markets are rarely efficient: "Coase argued that real-world transaction costs are rarely low enough to allow for efficient bargaining and hence the theorem is almost always inapplicable to economic reality."[1] In this case, the inefficiency persists because the costs of implementing a more detailed model would far exceed the benefits. [1] https://en.wikipedia.org/wiki/Coase_theorem |
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