Thursday, December 18, 2014

Economics in everyday life

"Being a super-fan is one thing, but this guy and his enormous helmet block the game from the women seated behind him. Thankfully for these resourceful ladies, the US Bank's Pay a Person app is a fast, convenient way to pay someone using only their phone number. Now if they could only trim that over-sized #1 finger down some, they could actually watch some football." Source: http://www.usbank.com/gamechanger


It seems the Coase Theorem of Economics is at work here.

DEFINITION OF 'COASE THEOREM '

A legal and economic theory that affirms that where there are complete competitive markets with no transactions costs, an efficient set of inputs and outputs to and from production-optimal distribution will be selected, regardless of how property rights are divided. Coase theorem asserts that when property rights are involved, parties naturally gravitate toward the most efficient and mutually beneficial outcome. 



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