The company I'm buying a house from won't negotiate any part of the
basic contract.  Why not?  The dopey answer is "monopoly power"; even if
the company were a monopoly, that wouldn't explain why they exert their
power on the contract terms margin rather than the price margin.  So
what's the right answer?  

I tend to think that the seller just anticipates no gains to trade.  The
higher the price, the fewer takers, the fewer takers, the higher average
transactions costs, sp WTP never rises above MC.  Other ideas?
            Prof. Bryan Caplan               [EMAIL PROTECTED]    

  "We may be dissatisfied with television for two quite different 
   reasons: because our set does not work, or because we dislike 
   the program we are receiving.  Similarly, we may be dissatisfied 
   with ourselves for two quite different reasons: because our body 
   does not work (bodily illness), or because we dislike our 
   conduct (mental illness)."
                   --Thomas Szasz, *The Untamed Tongue*

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