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

You can follow Mike Munger on Twitter at @mungowitz

Come along on a journey through the corridors of economic history and methodology with our esteemed guest, Bruce Caldwell from the Center for History of Political Economy at Duke University. Caldwell's personal voyage, from the nuances of economic methodology to his deep dive into Austrian economics, sets the stage for an enthralling discussion on the workings of institutions, transaction costs, and the profound impact of Friedrich Hayek's theories on modern economics. Get ready to unlock the secret meaning behind the unique TIPS acronym within Austrian economics.

We follow Hayek's intellectual transition from his focus on business cycles to the intricate challenges of economic calculation and knowledge distribution. The conversation illuminates the value of information in economic decision-making and highlights the importance of markets in reconciling diverse plans and purposes. Discover how Hayek's 1945 paper reshaped economic thinking, extending its influence beyond the Austrian school and into the realms of neoclassical economics.

Our exploration culminates with an examination of the very fabric holding our economic systems together – institutions. Delve into the evolution of economic institutions with insights from Doug North's intellectual quest and the relevance of Austrian capital theories in understanding economic flexibility.

Links:

Bruce Caldwell, Beyond Positivism https://www.amazon.com/Beyond-Positivism-Bruce-Caldwell/dp/1138834238

Bruce Caldwell and Hansjoerg Klausinger, Hayek: A Life, 1899-1950 https://www.amazon.com/Hayek-Life-1899-1950-Bruce-Caldwell/dp/0226816826/

F.A. Hayek, 1945: The Use of Knowledge in Society, American Economic Review. https://www.econlib.org/library/Essays/hykKnw.html

Michael Munger, "The Socialist Generation Debate" https://www.aier.org/article/the-socialist-generation-debate/

Surge Pricing, NPR. https://www.vox.com/money/24105250/fast-food-restaurants-dynamic-pricing-algorithm-wendys

Hope Center at Duke. https://today.duke.edu/2018/08/duke-center-expands-commitment-history-economics

You can follow Mike Munger on Twitter at @mungowitz

The digital realm is rife with invisible threats, and this episode doesn't shy away from the gritty realities of ransomware and the burgeoning industry of cyber insurance. We tackle the conundrum: How do these defensive expenditures impact our economy when they don't actually produce anything tangible? From the early days of cyber insurance to the ongoing battle against hackers, learn how organizations across the board—from the halls of government to the frontlines of business—are fortifying their defenses against a barrage of cyber threats, each with their own unique strategies and vulnerabilities.

Wrapping up with a human touch, our conversation turns to the pivotal role individuals play in the security of networks and the negotiation tactics employed once defenses have been breached. And because all work and no play makes for a dull podcast, we round off the session with a sprinkling of economic humor, answering listener queries with a blend of wit and wisdom. Don't forget, for those hungry for more knowledge, I've got some book recommendations to deepen your understanding of the legendary thinker Adam Smith.

Links:
Anja Shortland Website: https://www.kcl.ac.uk/people/anja-shortland-1
Duke CHOPE Hayek Lecture with Dr. Shortland: https://www.youtube.com/watch?v=Czs2EYDo2sI

Books:
Arthur Herman: How the Scots Invented the Modern World https://www.amazon.com/How-Scots-Invented-Modern-World/dp/0609809997
James Otteson: Adam Smith's Marketplace of Life https://www.amazon.com/Adam-Smiths-Marketplace-James-Otteson/dp/0521016568/ref=monarch_sidesheet
Adam Smith: The Theory of Moral Sentiments https://www.libertyfund.org/books/the-theory-of-moral-sentiments/
EconTalk Book Club (six episodes): https://www.econtalk.org/klein-on-the-theory-of-moral-sentiments-episode-1-an-overview/

You can follow Mike Munger on Twitter at @mungowitz

Unlock the secrets of the energy market evolution with economist Professor Lynn Kiesling, who brings her expertise on transaction costs and the digital transformation of the electricity industry to our table. Our energized discussion orbits around the innovative world of Distributed Energy Resources (DERs), where we explore the shift from consumers to proactive producers, thanks to technologies like rooftop solar panels and home energy storage. Professor Kiesling, drawing from her academic journey and reverence for Ronald Coase's work, delves into the institutional structure of production within firms and imparts her wisdom on navigating the complex regulatory frameworks that shape our smart grid technologies.

Also, 4 new TWEJ's, and a letter. It's the January TAITC!

• This month's guest: Lynne Kiesling: https://lynnekiesling.com/
• Our paper: Theisen, Kiesling, and Munger, "Airbnb to solar: electricity market platforms as local sharing economies." Public Choice: 2022
• Lynne's Substack: "Are We Talking Ourselves Out of Progress?"
• Lynne's Substack: "Pareto-relevant Externalities (You don't have to internalize everything, folks!)

Links:

• Buchanan and Stubblebine, "Externality." Economica.
• Russ Roberts and the parable of the wind and the sun: https://www.econtalk.org/david-mcraney-on-how-minds-change/
• Amory Lovins (cold beer, hot shower, "Nega-Watts"): https://en.wikipedia.org/wiki/Amory_Lovins
• Ohtani's contract, from REASON: https://reason.com/2023/12/15/baseball-star-shohei-ohtanis-new-contract-is-a-massive-tax-avoidance-scheme-nice/

You can follow Mike Munger on Twitter at @mungowitz

TAITC tries to navigate the complex world of 5G, Huawei, and the telecom revolution with special guest John Pelson, author of the thought-provoking book, Wireless Wars. With Pelson's unique insights from his time as a corporate executive in the wireless tech industry, we explore the pivotal role of rapid, reliable communication in promoting cooperation and exchange. We'll take up some of the intricacies of switching technology, capacity increases, and how institutions and transaction costs influence the wireless business competition.

Our journey won't stop at revealing the inner workings of the telecom industry. We'll also shed light on the transformative impact of 5G technology on society. Beyond simply being a faster version of 4G, we'll discuss how 5G acts as a conduit connecting things to things, with the potential to bring radical changes to multiple industries. Discover why it's not too late to jump on the 5G bandwagon and how its full potential is yet to be realized.

Some background info and links:

• Underappreciated Economists: Karl Mittermaeir (by M.C. Munger)
• SQL queries: Joins

Books'o'da'Month!
•Wireless Wars, Jon Pelson
•The Capitalist Manifesto, Johan Norberg (I said Jonah, but of course it's Johan!!!)
•The Hand Behind the Invisible Hand, Karl Mittermaier

You can follow Mike Munger on Twitter at @mungowitz

What limits innovation? Is that good? I talk to Adam Thierer, senior fellow at the R Street Institute, exploring the concept of permissionless innovation and its far-reaching implications. From ancient Mesopotamia to the digital revolution, we unpack how policy context shape the trajectory of innovation and, consequently, our society.

With Aaron Wildavsky saying "Go!" and my son Kevin Munger saying "Not so fast, there Scooter!", we venture into the contentious territory of innovation intellectual property rights in an era of digital sharing.

FOUR TWEJs (trying to keep THAT weekly, at least), and some great letters.

LINKS:
PAPERS and BOOKS by ADAM THIERER:

• https://rtp.fedsoc.org/paper/the-coming-onslaught-of-algorithmic-fairness-regulations/
• https://fedsoc.org/commentary/fedsoc-blog/the-problem-with-ai-licensing-an-fda-for-algorithms
• https://news.bloomberglaw.com/us-law-week/overregulating-ai-will-disrupt-markets-and-discourage-competition
• https://www.rstreet.org/people/adam-thierer/
• https://www.amazon.com/Books-Adam-Thierer/s?rh=n%3A283155%2Cp_27%3AAdam+Thierer

Money Pump:

• https://www.oxfordreference.com/display/10.1093/oi/authority.20110803100205601#:~:text=The%20concept%20was%20introduced%20by,willing%20to%20pay%20for%20it.
• https://johanegustafsson.net/books/money-pump-arguments.pdf

Aaron Wildavsky, SEARCHING FOR SAFETY, https://www.routledge.com/Searching-for-Safety/Wildavsky/p/book/9780912051185

Calestous Juma, INNOVATION AND ITS ENEMIES https://academic.oup.com/book/25649

William Baumol, ENTREPRENEURSHIP (article) https://www.sciencedirect.com/science/article/abs/pii/088390269400014X

Epstein and Munger on Capitalism and Stagnation https://www.youtube.com/watch?v=4o-s541UKgI

Munger on “Permissionless Innovation” on Econtalk https://www.econtalk.org/michael-munger-on-permissionless-innovation/

You can follow Mike Munger on Twitter at @mungowitz

Are you intrigued by the transformative potential of blockchain and Ethereum? This conversation with Ryan Berckmans, an Ethereum enthusiast and savvy investor, will unravel world that remains mysterious to most.

We also reflect on Ethereum's potential as a geopolitical tool and the enticing prospect of stablecoins. As we venture into the world of privacy technologies like zero-knowledge proofs of identity or performance, we walk a knife-edge separating privacy and security. Wrapping up, we discuss the economic benefits of pseudonymity and the potential regulatory response(s).

Plus, just to keep TWEJ meaningful (otherwise, it would be "TMEJ", which is too hard to say), FOUR new economics jokes, one for each week of the month! And several letters, to give a taste of what I'll talk about in November.

Some Links:

• Ryan Berckmans on LinkedIn
• Ryan Berckmans on Twitter
• Ethereum
• Learn about Ethereum
• Dune: A Dashboard of Dashboards of Tokenized Assets

You can follow Mike Munger on Twitter at @mungowitz

A thought-provoking conversation about Effective Altruism (EA) with technologist Ben Goldhaber, as we explore its intersections with utilitarianism and transaction costs. We'll try to navigate the tricky terrains of libertarianism and the more "directed" world of EA, balancing directional and destinationist solutions, and the role of strong leadership and community dynamics in maintaining this equilibrium.

We'll question the limits of utility maximization as a framework and ponder over the potential dangers it could pose if unchecked. Our discussion investigates how EA, rational thinking, and global development has influenced the field of AI alignment.

And my favorite new TWEJ, from @dtarias. In the first monthly edition of TAITC.

Some resources:

• The Reddit source for the TWEJ
• Sunday Brunch, for $195, at the Breakers
• EconTalk: Peter Singer
• EconTalk: Will McCaskill and Longtermism
• EconTalk: Eric Hoel and the Repugnant Conclusion
• Kevin Munger--Everything Was Rational and Nothing Vibed
• Consequentialism: IEP
• Effective Altruism Forum
• SB-F on SB-F (New York Times)

You can follow Mike Munger on Twitter at @mungowitz