The answer to every question in economics? Transaction costs. A Nobel laureate famously told a dissertation student, "Michael the answer is transaction costs." It took 20 years, but he was right. Learn more on The Soul of Enterprise podcast. #Economics#Business#Podcast
Economists define product value as consumer surplus—the difference between what you'd pay and what you actually pay. Even with a huge markup, if you create $6 in value for the consumer, that's real economic impact. Listen to The Soul of Enterprise. #Economics#Value#Business
AI could drive transaction costs to zero, potentially making the optimal firm size zero. Imagine automating buying, selling, and management decisions with AI and smart contracts. The problem? #AI#FutureOfWork#Economics
Economists often say demand curves slope downward: reduce the cost, people buy more. But the real innovation? Reducing *transaction costs*. Making it more convenient to acquire something, not cheaper, allows you to keep full price. #Economics#BusinessStrategy#TransactionCosts
Global poverty has seen an unbelievable decline when measured by hours worked to acquire goods. Since China's market reforms, global poverty has dropped from ~70% to under 10%, though some African nations lag behind. #PovertyReduction#GlobalEconomy#MarketEconomics
