Christian B. Sundquist, a law professor at the University of Pittsburgh, cites “Coase and the Constitution” as part of his discussion of “competitive federalism” in his 2017 law review article “Positive Education Federalism.” To the point, Professor Sundquist writes (p. 359):
“The model of competitive federalism … seeks to promote a deregulated ‘free market’ at both the state and federal level through incorporation of the economic principles of consumer choice and competition.” (Here, Sundquist drops a footnote, #44, and cites several scholars, including yours truly.)
Although Sundquist’s one-sentence description of “competitive federalism” — an ideal world in which national and state governments compete with each other to win over the hearts and souls of the people — is no doubt an attractive one, this vision is too watered-down compared to what I specifically propose in my Coase paper. What I propose is an actual “federalism market” in which various governmental units and private firms would have to compete with each other for the right to enact rules for a specific domain.
Pingback: Coase and the Constitution: Reply to MacDonald | prior probability