Re: Of Coase

["Max B. Sawicky" <sawicky@xxxxxxxxxxxxxxxx>]

What would the critics say to Coase's dictum
that you can buy innovation or rent entrepreneurs?

I suppose innovation is hard to price, hence the
market for it is deficient.  For inability to sell
innovation, entrepreneurs (and venture capital) are born.
This would be accentuated insofar as there is innovation
without social purpose that drains effort and capital
from useful innovation.  Either way, the power is still
with capital.

mbs




but Coase would be subject to the "Austrian" school and the Marxian school's
critique that the neoclassical economics that Coase pursues is fundamentally
static and thus ignores the role of "entrepreneurs" and innovation.

I don't believe in the innovation argument, BTW, because there's nothing
that says that innovation is automatically good (since, e.g., the new Ponzi
schemes that are thought up almost every day are examples of innovation) and
there's nothing that says that governments, grass-roots democratic groups,
etc., can't innovate.
Jim