Economic performance depends crucially on how parties adapt to changing circumstances. We therefore study how the organization of economic activity can facilitate such adaptation. Where spot transactions would produce inefficient adaptation, we ask how governance structures (allocations of...

Mexico is undergoing a general transformation from a closed, command-type economy to an open, market-type economy, but today Mexico is still more closed than open. Two areas where since early 1995 the Government has sought to force open doors long held shut by state monopolies and monopolistic...