03 September 2009

Ronald Coase, the theory of the firm, and principal agent problems

Coase's Nobel Prize-winning theory essentially states "outsource as much as you can until the transactions costs become excessive. Then stop."

Looks like nobody told the US embassy in Kabul who are paying guards to guard the guards.
The U.S. Embassy in Afghanistan has banned alcohol and assigned American personnel to watch over the embassy's security guards following allegations of lewd behavior and sexual misconduct at their living quarters.
This is nearly as funny as the US needing to build a wall around their fence.
(AP) –

TIJUANA, Mexico — Police in the Mexican border city of Tijuana say they have arrested six men for stealing pieces of the U.S. border fence to sell as scrap metal.

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