The Coase Conjecture and the iPhone
Ronald Coase must have enjoyed this article in today's NY Times business section. My 10 year old son restated the Coase Conjecture to me after reading the article. Here is its the lead sentence; "It looks as if many people are so sure the next iPhone is going to be good that they are not buying the ones Apple is selling now." So, the expectation of product quality improvement leads to delayed expenditure today! For those of you who have forgotten their intermediate micro; here is the Coase Conjecture.