Sailing Towards the Brave New World of Zero Transaction Costs

The Coase Theorem is in essence an if-A-then-B statement. Previous discussions of the Theorem have mostly focused on the then-B part and examined that, given the condition of A, whether B is true or not. The present study attempts to analyze the Theorem from a different angle. In particular, we push the if-A assumption, i.e., the zero transaction costs assumption, to its logical limit, and then explore the implications. We argue that the price mechanism, which is implicitly employed as the foundational basis of the Coase Theorem, is the result of positive transaction costs. Consequently, if transaction costs are zero, then money and prices as commonly understood would not exist, and the value of production would become a vague concept without any operational content. As such, the world of zero transaction costs may be even more peculiar than Coase might have thought!     

The Commonality Between Economics and Law

The development of law and economics is a success story in the expansion of economics into other social sciences since the 1960s. The success has been attributed to the fact that economics offers a powerful set of analytical tools with a forceful theory of human behavior. But if this is the only reason, then the move of economics into other social sciences such as political science and sociology should have been equally successful. This, however, has not been true, and the discrepancy calls for an explanation. The commonalities between economics and law in both subject matter and analytical approach provide a more convincing explanation; some of the difficulties faced by the legal economists can also be explained by an appreciation of the commonalites between economics and law.     

Religion and the Extension of Trust

Political Behavior - The ability to cooperate with others, both individuals and institutions, is an essential social function built on trust. We explore the competing religious logics that shape...     

The Age of Geoeconomics, China’s Global Role, and Prospects of Cross-Strait Integration

After noting the rise of geoeconomics in the post-Cold War era, the paper ascertains how the age of geoeconomics re-defines power and the rules of the balance of power game. Of particular significance is that a nation’s economic security eclipses its military security (or traditional national defense). In this context, I examine the meanings of the rise of a re-ascendant China for world politics in general and for Taiwan’s future in particular. Considering Taiwan’s heavy dependence on imported natural resources and its isolation and exclusion from vital international economic groupings, such as FTA’s. ASEAN, ASEM, and the 16-nation Asian super economic bloc in the marking. Finally, I take a prospective look at the prospect of a future cross-Strait integration between Taiwan and mainland China under the impact of the dictate of geoeconomics.

A methodological comparison of Ronald Coase and Gary Becker

This short paper comparatively studies Ronald Coase and GaryBecker from the methodological perspective. Since Becker's analyticalapproach is known to be a very general one, when Becker's andCoase's analytical approaches are compared, it is natural toassume that Becker's approach will be the easy winner. Thisanalysis shows, however, that the opposite turns out to be thecase. Two criteria (generality and applicability) are used tomake the assessment.