Home › Authors › Douglass North › Quote
Information costs are reduced by the existence of large numbers of buyers and sellers. Under these conditions, prices embody the same information that would require large search costs by individual buyers and sellers in the absence of an organized market. (footnote 4: The original contributions were those of Hayek (1937 and 1945)).
— Douglass North
Share this quote
Another quote →
More quotes by Douglass North
Effective institutions raise the benefits of cooperative solutions or the costs of defection, to use game theoretic terms.
Institutions (1990)
The factors we have listed (innovation, economies of scale, education, capital accumulation, etc.) are not causes of growth; they are growth.
Institutions are the humanly devised constraints that structure political, economic, and social interactions. They consist of both informal constraints (sanctions, taboos, customs, tradition, and code of conduct) and formal rules (constitutions, laws, property rights).
Institutions (1990)
Specialization in this world is rudimentary and self-sufficiency characterizes most individual households
Institutions (1990)
Its objectives to suggest new paths for the study of European economic history rather than fit either of these standard formats. It is more than anything an agenda for new research.
All Douglass North quotes →