Send us a text Can a single $100 bill solve an entire town's debt crisis? This riddle is a window into transaction costs. I rely on Jeffrey Rogers Hummel's insights, adding a few thoughts of my own. And a cool letter: Ever wondered why you haggle for a car but not for your morning Starbucks's coffee? Plus, a book recommendation: Nobel Prize-winning economist Edmund Phelps' "My Journeys in Economic Theory," a compelling read that blends economic insights with political theory. Links: David Henderson gives a statement of " the riddle " J.R. Hummel's web site Similar story, from LvMI Haggling: Sebastian Schweighofer-Kodritsch, " The Bargaining Trap," Games and Economic Behavior , November 2022, v. 136, pp. 249-54. Book recommendation: Edmund Phelps, My Journeys in Economic Theory. Columbia University Press. https://cup.columbia.edu/book/my-journeys-in-economic-theory/9780231207300 If you have questions or comments, or want to suggest a future topic, email the show at
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