Desert Town Dilemmas and the Problem of Property Rights

The Answer Is Transaction Costs

We embark on a journey through the lenses of Hume, Smith, and Coase, piecing together the roles of observation and empirical study in shaping our understanding of societal conventions and moral philosophy. David Schmidtz recounts a defining moment from his academic path, sparking a robust discussion on the fusion of economics with moral considerations in the realm of ownership and resource distribution.
The discussion with David delves into the essence of property ownership, dissecting what it means to hold rights over something as abstract as an idea or as concrete as land. We grapple with the notion that property is not just a "bundle of sticks" but a set of societal constructs, born from necessity and shaped by our collective desire for harmony. Through examples of conflict resolution and the negotiation of public and private interests, such as eminent domain and navigation easements, we confront the delicate dance between individual autonomy and the greater good. The philosophical undercurrents of property law are laid bare, revealing the presumption in favor of liberty in those deep waters.
The "Desert Town" source: https://www.cambridge.org/core/books/abs/elements-of-justice/desert/268B6C7A9B17949572933A4DAA0CAB09
Wall Street Journal article on Costco gold purchases: https://www.wsj.com/finance/investing/selling-costco-gold-bars-f14e966f
Biden DOT rule on airline refunds:

• https://www.transportation.gov/briefing-room/biden-harris-administration-announces-final-rule-requiring-automatic-refunds-airline
• https://abcnews.go.com/Politics/airlines-give-automatic-refunds-canceled-flights-delayed-3/story?id=109573733

Lynne Kiesling on The Essential Ronald Coase, Fraser Institute.
Books:
C. Johnson, R. Lusch, Schmidtz, Commercial Society: A Primer on Ethics & Economics (Rowman & Littlefield).
Bryan Caplan and Ady Branzei. Build, Baby, Build. Graphic novel just published by the Cato Institute

If you have questions or comments, or want to suggest a future topic, email the show at [e-mail] !

You can follow Mike Munger on Twitter at @mungowitz

Chapters

1. Transaction Costs and Property Rights (00:00:00)

2. Philosophy, Economics, and Observational Theory (00:04:43)

3. The Nature of Property Ownership (00:12:59)

4. Defining Property Rights & Conflict Resolution (00:23:57)

5. Understanding Eminent Domain vs. Navigation Easements (00:32:44)

6. Origins and Philosophy of Desert Town (00:41:24)

7. Philosophical Debate on Intellectual Property (00:48:08)

8. New US Airline Refund Policy (00:59:52)