Coasian Economics

Namy Roy wrote in and asked me if I’d read Niranjan Rajadhyakhsa’s column on Bangalore and the Coase Theorem, and suggested I blog about it.

I had read the column on Wednesday itself, and thought of mentioning it in a post on kids in aeroplanes. Since I’m busy making the quiz, I won’t be writing that post for a while, but do read the column. It’s good.

0 Responses to Coasian Economics

  1. metalhed says:

    Ok, so I knew outsourcing occurs to lower costs and build efficiencies. And all that mumbo jumbo about coase economics arrives at the same conclusion. What’s new? Am I missing something? because I guess the roadside baniya employing kids to the punjab farmers having bihari labour to do their farms have used this as a business practise since long. On a side note, if anything, the Coasian law would perhaps only indicate Bangalore as a bubble waiting to burst – what with the cost of living going up thanks to the same outsourcing biz, and a govt (when present) that couldn’t be more apathetic to the need for infrastructure and governance adding more woe – or should I say transactional costs.

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