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...
| Publicado en: | Southern Economic Journal Vol. 89; no. 3; pp. 708 - 732 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jan2023
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=161525211&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 161525211 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jan2023 vid: 89 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 161525211 10.1002/soej.12620 ppf: 708 ppct: 24 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 2.5MB tig: 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 refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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