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  • In fact, a large part of what we think of as economic activity is designed to accomplish what high transaction costs would otherwise prevent or to reduce transaction costs so that individuals can negotiate freely and we can take advantage of that diffused knowledge of which Friedrich Hayek has told us.

    "The Institutional Structure of Production". Ronald Coase's Nobel Memorial Prize Lecture published in Ronald Coase "Essays on Economics and Economists" (p. 9), May 2, 1994.