INTRODUCTION

LarsWerin

Therewasatimewhenalmosteveryeconomisttookitforgrantedthatbuyingandsellingoccurlikefreefallinavacuum:vailable,,perhapsmoreaccurately:eithertransactionswereconsideredtotakeplacecostlessly,ort,itwasperhapsnaturalthatmanyeconomistsshouldgoonandsuggest“firms”,thesewereseenasexogenouslygivensetsoftechnologicallypossiblebinationsofinputsandoutputs,withanattacheddevice-somethinglikeathermostat-whichcostlesslyregistersmarketpricesandautomaticallybringsaboutprofit-maximizingquantities.

Theoriginatorsofthe,however,lysuccessfulcoordinationoftheactivitiesofpracticallyeachandeveryhumanbeingallovertheworld,continuously!,overtheyears,thetraditiona,theanalysiscannotbeexpectedtolaceforthemexceptasformalskeletons,,moreandmoreeconomistsbegantousethetraditionaltheoryforsuchpurposes.

Occasionallytheseexercisesturnedoutwell,butveryofteneagerstudentscametofaultyconclusions-wi,oneeconomistafteranotherthoughttheycouldsaythatobservedeconomicbehaviorwasunsystematic,inefficient,,ofcourse,inascientificquagmire:,basically,waswrongwasthatcertaincruciallyimportantconstraintsonindividualdecisionsandactivitiesweremissingfromthetraditionalanalysis.

Themaingapswerefilledinthe1930s,,thatindividualdecisionsandactivitiesarealwaysrestrictedbythestructureofpropertyrights,andbytransactioncosts.(Sometimebeforethat,Knighthadlaidhisfingeronthestrategic,buttillthenmisunderstoodaspectofthisargument.),ArrowandStiglerbegantoinvestigatethecrucialroleofinformation-orrather,,almostallthepundits,infact.

tobedemonstrated,,theparadigmmustbeemployedfortheanalysisofimportantmarketphenomena,ofthekindwhichhadrousedthecuriosityofeconomistsschooledintheoldtradition,,thepow

Itishardlypossible,Ithink,tosingleoutsomepart,forinstance,thestudyCoasehimselfmadeofthe(non-existing!)-insales,heirbasicarticles,,however,ambitious,,,useffortandpatiencetobringitabout,notleasttoconvincetheauthorthathisbookhasindeedbeeaclassic.

ngementsweobservearoundus,,heargued,areresultsofchoicesamongpossiblestructuresofc,thec“contracts”,thewordhardlyappearedintheindexofaneconomictreatiseortextbook,butsoonitbecameoneofthemostimportantentries.