Government Intervention Costs May Outweigh Market Imperfections, Coase Argues
The article discusses how government interventions may not always solve problems in society without creating new costs. Ronald Coase suggests that we should consider if government rules or market solutions are better in each case. It's important because assumptions about maximizing social benefits don't always work in real life. Coase believes in looking at value as subjective and understanding that the world is always changing, not in balance. He argues that perfect information isn't always available and the way property rights are set can affect outcomes. In some cases, market solutions might be better than government rules to create the most value and wealth.