EP29 · Economy · first published 2020-08-03
Growth, institutions and Acemoğlu | Mika Maliranta | Negotiator 29
Mika Maliranta, research professor at the Finnish Competition and Consumer Authority, explains why firms exist at all (the Coase theorem), where the line runs between vertical and horizontal integration, and how natural monopolies are regulated. The second half takes up Acemoğlu and Robinson's institutional theory, The Narrow Corridor and Hayek: why good institutions are not adopted even when they are well known, why some institution always fills the gap — the mafia included — and why the Nordic model and earnings-related unemployment insurance actually encourage risk-taking.
Growth, institutions and Acemoğlu | Mika Maliranta | Negotiator 29
Summary: Mika Maliranta, research professor at the Finnish Competition and Consumer Authority, explains why firms exist at all (the Coase theorem), where the line runs between vertical and horizontal integration, and how natural monopolies are regulated. The second half takes up Acemoğlu and Robinson’s institutional theory, The Narrow Corridor and Hayek: why good institutions are not adopted even when they are well known, why some institution always fills the gap — the mafia included — and why the Nordic model and earnings-related unemployment insurance actually encourage risk-taking.
Key Themes
- Maliranta’s roles and the competition authority as a sports analogy: Discussed from 00:00 onward.
- Refereeing and groundskeeping: two different jobs: Discussed from 02:30 onward.
- Why firms exist: the Coase theorem and transaction costs: Discussed from 05:00 onward.
- Managerial authority, hierarchy and the edge of the market: Discussed from 07:30 onward.
- Vertical and horizontal integration: Discussed from 10:00 onward.
- Dominant market position and its abuse: Discussed from 12:30 onward.
- Natural monopolies and the regulatory toolkit: Discussed from 15:00 onward.
- Public goods and Acemoğlu’s The Narrow Corridor: Discussed from 17:30 onward.
- Why good institutions are not adopted: Discussed from 20:00 onward.
- China’s long institutional development: Discussed from 22:30 onward.
- Evolution, sexual selection and resources: Discussed from 25:00 onward.
- Kinship, cooperation and the need for institutions: Discussed from 27:30 onward.
- The mafia as an institution — something always fills the gap: Discussed from 30:00 onward.
- Why the Nordic model has held up: Discussed from 32:30 onward.
- The problem of measuring public-sector productivity: Discussed from 35:00 onward.
- Productivity growth as a win-win, and the terms of trade: Discussed from 37:30 onward.
- Safety, trust and happiness measurements: Discussed from 40:00 onward.
- Earnings-related security encourages risk-taking: Discussed from 42:30 onward.
- Closing: Discussed from 45:00 onward.