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33 sats \ 3 replies \ @deep 3 Jan \ on: The Problem of Cooperation Costs (Economic Forces, Josh HendricksoN) econ

make sense of development traps and real world institutions that basic transaction cost stories struggle to explain.

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0 sats \ 2 replies \ @denlillaapan OP 3 Jan

yea? How do tx costs fail to explain those? (I'm genuinely curious, don't know this perspective)

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12 sats \ 1 reply \ @deep 3 Jan

Transaction costs can become a vague residual explanation. Cooperation costs narrow this down to commitment and sequencing problems explaining why credible restraint over time not just low exchange costs shapes development and institutions.

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0 sats \ 0 replies \ @denlillaapan OP 3 Jan

Right, so it's a semantic distinction, just a better way of framing it...?

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