Moreover, the frictional difficulties associated with the end of the transition period--no decision as bad as that to join what was then the EEC in the first place can be reversed totally costlessly
, however great the costs of not reversing it would be--would be felt just a year before the next scheduled general election.
Eusepi and Wagner make the important observation that as "a practical matter of democratic operation, the ideal of a cooperative democracy is surely limited to relatively small-scale democracies," which is why they work with the example of a town "that contains a few thousand people at most, and where people can easily and nearly costlessly
move somewhere else if they choose to do so" (p.
The extreme example is a monopoly, in which a single firm serves the whole market and is able to immediately and costlessly
profit from the absence of competition by naming its price.
Throughout the article, we assume that the insurer can costlessly
observe output realizations [y.
We also assume that the firm can costlessly
hedge its entire exposure to risk [Z.
Accordingly, we will consider three cases, all of which are of practical importance in some settings: when prospective injurers cannot foresee the precise harm they will cause but only average harm; when they can perfectly and costlessly
foresee the precise harm; and when they can do so but only if they incur a cost.
If one can costlessly
impose a small loss on others by withholding esteem, or costlessly
impose a small gain by granting esteem, there is no incentive to free ride'.
Of course, there would still be court costs to prosecute the fraudulent voters, but the deterrent effect of a higher fine would costlessly
reduce the number of potential fraudulent voters and reduce monitoring costs.
Financial arbitrage involves developing new and better algorithms that can be deployed almost costlessly
, whereas in manufacturing arbitrage typically involves expensive actions like moving plants from one location to another or implementing new production processes.
In a zero transaction cost world, the Coase Theorem shows that we could use any devices with any degree of tailoring to protect use interests, and if such devices were not optimal for those concerned--however many they are--they would transact costlessly
toward the efficient result.
potential resource user could costlessly
determine which rights he
Once we are out of the world of apparent abundance, getting out of the bust is not as easy as Keynes makes it seem by just spending more and bringing the factors of production costlessly
into the process.