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The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
Edition 13ISBN: 9780132992695 Exercise 9
Does either persuasion or coercion enjoy any inherent advantages over the other as a way of inducing cooperation?
(a) People who are cooperating because they have been persuaded usually want to maintain the relationship. Those who have been coerced will typically be looking for ways to sever the relationship. What does this imply about the level of transaction costs that will be associated with cooperative endeavours in each case?
(b) Coercion can be used to deny people the opportunity to engage in voluntary cooperation. Does this occur? Why should anyone want to use coercion to prevent others from cooperating on a voluntary basis?
(a) People who are cooperating because they have been persuaded usually want to maintain the relationship. Those who have been coerced will typically be looking for ways to sever the relationship. What does this imply about the level of transaction costs that will be associated with cooperative endeavours in each case?
(b) Coercion can be used to deny people the opportunity to engage in voluntary cooperation. Does this occur? Why should anyone want to use coercion to prevent others from cooperating on a voluntary basis?
Explanation
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The advantages in the economic system in...
The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne
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