In the United States no one may operate a broadcasting station unless he first obtains a license from the Federal Communications Commission. These licenses are not issued automatically but are granted ...

Theme of the Lecture: when can institutions not improve efficiency? When can we not improve upon market outcomes? Coase Theorem: Efficiency and Bargaining -- closely related to value maximization.

According to the Coase theorem, in the absence of transaction costs, people who value resources the most will engage in mutually advantageous exchange to maximize the value of resources under their ...