8cda82da_brary_of_Economics_and_Liberty__ast_Highlights_HIDE_HIGHLIGHTS
[Time] 1:10:49
Addendum: Last week's podcast, Munger on the Nature of the Firm, shoe store example: hard for a department store to compete with mall stores carrying similar merchandise because it has to impute a rent, figure out how much of its legal advice should be attributed to the shoe department, etc. Standalone store has more easily measurable information about its profits. Economies of scale that are held somewhat by department store are somewhat offset by standalone stores being parts of chains, which have their own economies of scale. Filters, economizing on search costs: department store has an advantage by being under one roof, but mall itself is all under one roof; standalone may be easier to search under because stores are well-marked. But department stores offer filters for quality, reducing variation in quality. Department store's brand name searches for me, and I'm willing to pay a premium for that comfort. That's likely what is offsetting the department store's disadvantage. Sears. Why does an author use a publisher when you could self-publish? Editing, marketing, but more: publisher is a filter that reassures book buyers that the book will be of a certain quality.
Don Boudreaux on Globalization and Trade Deficits | EconTalk | Library of Economics and Liberty