Douglass C. North
The Answer Is Transactions Costs
By Michael C. Munger
This article appeared in the Summer 2016 issue of The Independent Review.
What made Douglass C. North brilliant was in part his unusual ability to see that transactions costsbarriers to exchange, broadly speakingtake many forms and can have major consequences. This vision guided much of Norths scholarship, from his early contributions to New Institutional Economics to his later work on state violence.