Tomorrow 3.0: Transaction Costs and the Sharing Economy

Tomorrow 3.0: Transaction Costs and the Sharing Economy
  • Hardcover
  • 188 pages
  • Tomorrow 3.0: Transaction Costs and the Sharing Economy
  • Michael C. Munger
  • 04 December 2019
  • 1108427081

Tomorrow 3.0: Transaction Costs and the Sharing Economy❴Reading❵ ➶ Tomorrow 3.0: Transaction Costs and the Sharing Economy Author Michael C. Munger – Essayreview.co.uk With the growing popularity of apps such as Uber and Airbnb, there has been a keen interest in the rise of the sharing economy Michael C Munger brings these new trends in the economy down to earth by With the growing popularity Transaction Costs Kindle Ð of apps such as Uber and Airbnb, there has been a keen interest in the rise of the sharing economy Michael C Munger brings these new trends in the economy down to earth by focusing on their relation to the fundamental economic concept of transaction costs In doing so Munger brings Tomorrow 3.0: ePUB Ì a fresh perspective on the sharing economy in clear and engaging writing that is accessible to both general and specialist readers He shows how, for the first time, entrepreneurs can sell reductions in transaction costs, rather than reductions in the costs of the products themselves He predicts that smartphones will be used to commodify excess capacity, 3.0: Transaction Costs PDF ↠ and reaches the controversial conclusion that a basic income will be required as a consequence of this new transaction costs revolution.


About the Author: Michael C. Munger

Is a well known Transaction Costs Kindle Ð author, some of his books are a fascination for readers like in the Tomorrow : Transaction Costs and the Sharing Economy book, this is one of the most wanted Michael C Munger author readers around the world.


10 thoughts on “Tomorrow 3.0: Transaction Costs and the Sharing Economy

  1. says:

    The Tomorrow 3.0 economy will foster permissionless innovation to makeefficient use of excess capacity Munger dates this transformation, approximately, to 1997 with eBay the first time we began to specialize in selling notstuff but reductions in transaction costs for access to existing stuff There s good economic history throughout the book, including Ronald Coase the father of transaction costs, to Marx, Smith, and other innovations Uber and Airbandb don t sell taxi and hotel The Tomorrow 3.0 economy will foster permissionless innovation to makeefficient use of excess capacity Munger dates this transformation, approximately, to 1997 with eBay the first time we began to specialize in selling notstuff but reductions in transaction costs for access to existing stuff There s good economic history throughout the book, including Ronald Coase the father of transaction costs, to Marx, Smith, and other innovations Uber and Airbandb don t sell taxi and hotel services, they sell reductions in transaction costs And there are three types 1 Triangulation matching buyer with seller, agreeing terms2 Transfer of product service and payment terms3 Trust Honesty, performance ratings and brands fulfill this role, among other traits.To the consumer, all costs are transaction costs So a reduction in the above 3 costs by 10% is the same as a reduction in price of 10% Cars and houses are the obvious areas where there is excess capacity, but how about clothing, appliances And what will 3 D printing allow in the future Munger believes Uber is not a threat so much to taxis as it is tothe ability to reduce transaction costs of renting vs buying Provocative thought Throughout the history, the extent of specialization has been limited by the size of the cooperation horizon, which is why a small town might have a band while a major city has a full symphony Cities expand the horizon So does wireless technology, the smartphone now, whichpeople in the world have than flush toilets Will regulations slow some of this innovation down Probably Look at Uber s legal issues, and trying to ride share airplane regulations But they can t stop it, ultimately I loved the history of the 1896 law passed by the Pennsylvania General Assembly a red flag law, found in US and England Any self propelled vehicle be proceeded by a man on foot walking 50 to 100 feet in advance, waving a red flag in warning Of course, it was done to protect the people Ha To save all the jobs related to horses.Finally, a discussion of Universal Basic Income As Munger says, capitalism doesn t produce jobs it produces consumer surplus He thinks UBI is an imperfect and partial answer, possibly using the model of the Alaska Permanent Fund, whereby 25% of natural resource income is put into a fund, and the income earned is divided up by the residents of Alaska He thinks this is better than minimum wage laws, mass transit, and approximately 126 other poverty programs designed to help the poor, which we spend roughly 14,000 per poor person on He cites Milton Friedman and Charles Murray as two proponents of this type of program, though Murray does call for a Constitutional amendment.Another provocative idea here is the difference between a job and an identity If you re known as the Bourbon pickle guy, selling your wares that are delivered by Uber, maybe that s how we ll handle earning a living in Tomorrow 3.0 I don t know I do know that we humans are incredibly adaptable to any environment innovation thrusts upon us A very worthwhile read

  2. says:

    What kind of a society are we likely to live in, thanks to the ineluctable march of progress Munger s book explores the good and bad aspects of social and economic disruption He sides with the optimists but acknowledges the likelihood of massive negative side effects that need to be remedied by something like a basic income guarantee aka universal basic income.His main thesis is both broad and surprisingly narrow It is broad because it sees the current transformations as on par with the What kind of a society are we likely to live in, thanks to the ineluctable march of progress Munger s book explores the good and bad aspects of social and economic disruption He sides with the optimists but acknowledges the likelihood of massive negative side effects that need to be remedied by something like a basic income guarantee aka universal basic income.His main thesis is both broad and surprisingly narrow It is broad because it sees the current transformations as on par with the Neolithic and Industrial revolutions But it is narrow, perhaps too narrow, because it explains this transformation through the economic concept of transactions costs Munger argues that people will find it increasingly affordable to rent rather than buy stuff, so people will want to own less stuff This story fits the cases of Uber and AirBnB well They are cases of excess capacity being monetized thanks to lowered transactions costs.The book does a fine job explaining the beneficial effects of permissionless innovation As the price of mobile phones and software platforms goes down close to zero, even poor people will find it easier to satisfy their desires and even to become entrepreneurs or part time rentiers But the corollary trend is the reduced need for routine labour, which pushes down real wages This can potentially lead to social decay, inequality and unemployment.Munger s book shares the utopian optimism of the end of work crowd from Keynes to Rifkin, but it differs from them in offering agrounded perspective based on the economic insights of e.g Chicago, Austrian and New Institutionalist schools of thought While nobody knows what the future will look like, and while the predictions contained in this book are likely to be off, the central story is impossible to ignore As the rift between the increasingly productive sectors of the economy and the increasingly marginalized continues to grow, new solutions and new visions are called for Munger s book offers a good primer on what can be done to offer an alternative to the resurgence of Ludditism and atavism

  3. says:

    I heard Munger interviewed on EconTalk podcast with Russ Roberts and was interested enough in the discussion to read the book Overall, I think the podcast is better than the book, but the book is not bad.I think Munger is right in that politicians will delay full transformation of the economy as long as possible I think he is right that software will replace many jobs especially white collar jobs And I think he is right when he speculates that th I heard Munger interviewed on EconTalk podcast with Russ Roberts and was interested enough in the discussion to read the book Overall, I think the podcast is better than the book, but the book is not bad.I think Munger is right in that politicians will delay full transformation of the economy as long as possible I think he is right that software will replace many jobs especially white collar jobs And I think he is right when he speculates that the government will end up with the worst universal basic income plan possible Oh, I loved his critique of the taxi business I can think of numerous times where I have horrible taxi service, but I can t think of a single time I had a bad Uber experience.Some quotes I found interesting People don t fundamentally want stuff What they want is the stream of services that stuff provides But once the selection mechanism profits must be positive, for the firm to survive , eliminates all the firms that are losing money, it will look as if firms are seeking profits People will collect experiences, not belongings, and the idea of ownership will seem quaint and archaic by the end of this century There are two problems with Uber, or anything Uber like One is fairness, and other is economic disruption Uber understands that it is not in the transportation business It is in the business of selling reductions in transactions costs, using a software platform The sustained increase in the value of manufacturing in the US economy is remarkable my comment given the loss of jobs in the manufacturing sector So maybe the increased value isn t real and productivity gains from technology are being measured wrong Many people who played by the rules and took jobs that required specific training are going to be stuck Switching from the current system to a basic income system would save money on the spending side, increase the amount received by recipients, and increase the liberty and autonomy of the recipients at the same time We could do worse And we almost certainly will

  4. says:

    Heard about it a few days ago on an Econtalk.org podcast , ordered it from , got it today, and read it today It s a quick read, and worth the time If you re interested in what s happening in the economy, and how the nature of work, consumption use of durable goods in particular , life itself how all these things are going to change in the future, then get it and read it.AirBnB and Uber are case studies that we re all familiar with in the sharing economy Munger s thesis and a reas Heard about it a few days ago on an Econtalk.org podcast , ordered it from , got it today, and read it today It s a quick read, and worth the time If you re interested in what s happening in the economy, and how the nature of work, consumption use of durable goods in particular , life itself how all these things are going to change in the future, then get it and read it.AirBnB and Uber are case studies that we re all familiar with in the sharing economy Munger s thesis and a reasonable one it is is that they re really just software platforms that solve the problem of transactions costs, making it economically feasible, as consumers to get what we really want a place to stay for the night, a ride from here to there without actually owning the resource needed And if we do own the apartment or the car, it s a way to lower our effective price of ownership And it works because the problems of finding a trading partner, a trustworthy one, and transferring the agreed price are all taken care of by the software.Onceor Uber or figures out how to deliver, say, a power drill to your doorstep within a short time, why should you pay to own one, given that it s a device you ll maybe use a total of 30 minutes over a lifetime And have to pay to store in your closet or workroom, along with all those other tools that seemed oh, so indispensable.I ve had conversations along these lines on the question of why each homeowner should own a lawnmower why not have one for the neighborhood, with small charges for use, one person charged with keeping it running who gets to use it for no charge or some such muchefficient for all.Anyway, food for a lot of thought Tomorrow is coming our way

  5. says:

    Very interesting book on economics and where we are heading Do you buy or rent This isn t just about houses and cars We ll be renting stuff not storing it in our garages or closets as long as the price comes down Software has been the game changer and reduces costs Transaction costs are expenses including time, inconvenience, and actual payments required to use the item, and the problems involved in trusting others to deliver on their promises The book focuses on this concept.The predictio Very interesting book on economics and where we are heading Do you buy or rent This isn t just about houses and cars We ll be renting stuff not storing it in our garages or closets as long as the price comes down Software has been the game changer and reduces costs Transaction costs are expenses including time, inconvenience, and actual payments required to use the item, and the problems involved in trusting others to deliver on their promises The book focuses on this concept.The prediction here is that this economic revolution we re now in will be based on innovations that focus on digital tools that reduce the transaction costs More stuff will be rented and folks will collect experiences and not stuff Think AirBnb, Uber and Lyft They are software companiesdoesn t sell stuff they license software A technological unemployment is coming We re in a gig economy Prices and wages will decrease Rent the Runway for clothes, and others on the way My guess is that this will belikely to progress once the baby boomers are out of the workforce and younger people who grew up with smart phones take over I was surprised to find a bunch of typos here and the wording was so small in many places that it was difficult to read A larger font would be helpful and shouldn t be an issue as the book is only 188 pages Please get a proofreader

  6. says:

    Very well researched book on how much of the new economy will be aimed at selling reductions in transaction costs i.e the money, time, and inconvenience required to transact or use something as well as problems involved in trusting others Through automation of transactions, this will be facilitated by i software platforms, ii smart, portable hardware devices the smartphone in your pocket , and iii wireless Internet allowing for universal and continuous communication and permissionles Very well researched book on how much of the new economy will be aimed at selling reductions in transaction costs i.e the money, time, and inconvenience required to transact or use something as well as problems involved in trusting others Through automation of transactions, this will be facilitated by i software platforms, ii smart, portable hardware devices the smartphone in your pocket , and iii wireless Internet allowing for universal and continuous communication and permissionless innovation As a result, while the old economy was mainly about producing new stuff, the new economy will increasingly sell cheaper access to existing stuff Prime examples today are Uber and Airbnb For instance, the author posits that Uber is not a transportation company, but a software company selling reductions in transaction costs These developments can heavily impact the economy as consumers will own less and rent , prices might plummet, and also increases the required quality and durability of goods Essentially, the author argues, people don t want stuff, but want the stream of services provided by stuff, and if software can reduce transaction costs of access to that stuff significantly, this will cause people to not necessarily wanting to own stuff any but instead rent or otherwise buy access to that stuff

  7. says:

    Mindblowing book on the Third Great Economic Revolution The author spends much time analyzing the uber business model, which he takes as a proxy for what s to come an economic where reduction in transaction costs costs to provide a trusted good or service to someone as seamlessly as possible is the new prominent business model In the last chapter, the author discusses the likely social consequences this revolution will have, and advocates for a General Basic Income and the termination of ev Mindblowing book on the Third Great Economic Revolution The author spends much time analyzing the uber business model, which he takes as a proxy for what s to come an economic where reduction in transaction costs costs to provide a trusted good or service to someone as seamlessly as possible is the new prominent business model In the last chapter, the author discusses the likely social consequences this revolution will have, and advocates for a General Basic Income and the termination of every other social policies for the poor such as minimum wage, subsidies, housing preference I am quite opposed to that I believe simply giving money to the poor will make existing products servicesexpensive because of the increased disposal incomes that will drive prices up increasing the playing field , but understands his point of view It s a short 150 page read, highly recommended

  8. says:

    Please note, I only give five star ratings that change the way I think about the world Obviously, Tomorrow 3.0 does that Michael Munger writes about the complex topic of transaction costs with the breeze of a dime novel, yet preserves the richness of the topic His explaining of the sharing economy goes beyond the attempts of others who posited theories on the third revolution in human economic history including Alvin Toffler The Third Wave and Joseph Pine The Experience Economy.

  9. says:

    Really fascinating discussion claims a bit overwrought at times, but interesting discussion of how platforms like Uber operate mainly at the margin of reducing transaction costs and that is why the service, conceptually, is so valuable.

  10. says:

    Pretty good narrative on how new platforms disrupt and create a new lifestyle

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