And he followed up by saying that if the three premises of economics are wrong – there is imperfect information, high transaction costs and irrationality –
But the three premises of economics are not that there is perfect information, low transaction costs and rationality.
There are certain models which assume one or all of these things, sure, just as there are other models which assume their opposites.
Come on, Ackerloff got the Nobel for exploring imperfect information (the market for lemons….but do note that even he ruefully points out that there still is a market for used cars), Coase for exploring business structures with high and low transaction costs (high such lead to the creation of firms!) and so on.
Shouting \”High transaction costs!\” no more overturns \”economics\” than the imminent death of my cat does.