This is the Cater Daily Podcast for Monday, August 20, 2018.

I'm Caleb Brown.

What does the sharing economy have to offer?

And as importantly, what challenges does it pose

to employment are propensity to own versus, and everything from taxes to how we measure economic

activity.

At a Cato Daily Podcast Live Event held Friday, Michael Munger and I discussed his new book,

Tomorrow 3.0, transaction costs,

and the sharing economy.

Mike, let's build a foundation,

because when you take Econ 101,

you're told to forget about things like transaction costs because that just

complicates what we're trying to understand but of course you don't get to reality

without relaxing those various assumptions that we make about the world in order to have these nice clean economic models.

So how do transaction costs function and how have they function up until we have this great information revolution in the last 25 years?

There's two traditions in economics so it partly depends who you take

economics from. Big state school just assume a big state school. If you're taking

intermediate microeconomics you may never even discuss transactions cost and in particular you won't

hear anything about having the level of transactions cost being something that's

variable being able to sell reductions in transactions cost,

is really the heart of the thesis of my book.

And that's something that's both entirely new

...