Economic calculation and transaction costs: The case of the airline oversales auction system.

According to Nobel Laureate Edmund Phelps (2013, p. 123), Mises's critique of economic calculation under socialism renders him the originator of the economic analysis of property rights. This paper also suggests that implicit to Mises's impossibility theorem was also the origins of the theory of tra...

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Publicado en:Southern Economic Journal Vol. 89; no. 3; pp. 708 - 732
Autores principales: Boettke, Peter J., Candela, Rosolino A., Jacobsen, Peter J.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2023
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        atl: Economic calculation and transaction costs: The case of the airline oversales auction system.
      aug:
        au:
          Boettke, Peter J.
          Candela, Rosolino A.
          Jacobsen, Peter J.
        affil:
          Department of Economics, PPE 1A1, George Mason University, Fairfax Virginia,, USA
          F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics, Mercatus Center at George Mason University, PPE 1A1, Fairfax Virginia,, USA
          Angell Snyder School of Business, Ottawa University, Ottawa Kansas,, USA
      su:
        Von Mises, Ludwig, 1881-1973
        Property rights
        Labor theory of value
        Transaction costs
        Airplane seats
        Auctions
        Airline industry
      sug:
        subj:
          Property rights
          Labor theory of value
          Scheduled Passenger Air Transportation
          Scheduled air transportation
          Motor Vehicle Seating and Interior Trim Manufacturing
          Transaction costs
          Airplane seats
          Auctions
          Airline industry
          Von Mises, Ludwig, 1881-1973
      keyword:
        airline oversales
        Julian Simon
        Ludwig von Mises
        property rights
        transaction costs
        airline oversales
        Julian Simon
        Ludwig von Mises
        property rights
        transaction costs
      ab: According to Nobel Laureate Edmund Phelps (2013, p. 123), Mises's critique of economic calculation under socialism renders him the originator of the economic analysis of property rights. This paper also suggests that implicit to Mises's impossibility theorem was also the origins of the theory of transaction costs. This raises the following question: what is the relationship, if any, between the process of economic calculation and the concept of transaction costs? Filtered through a Misesian lens, we argue that transaction costs are the costs of engaging in economic calculation. We illustrate our theoretical point utilizing the case of airline oversales auction system first proposed by Julian Simon (1968). In doing so, we reframe the problem of airline oversales from a transaction‐cost approach, one in which property rights in airline seats are initially poorly defined. By doing so, we illustrate that resources expended to discover the valuable attributes of a good (in this case airline seats), the terms of exchange between potential trading partners, as well as enforcing the terms of an exchange, all of which are transaction costs, are also, by definition, the costs of calculating the exchange value of goods. Thus, the airlines oversales auction system is illustrative of an institutional solution to the problem of economic calculation via a reduction of transaction costs.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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