INTRODUCTIONLarsWerinTherewasatimewhenalmosteveryeconomisttookitforgrantedthatbuyingandsellingoccurlikefreefallinavacuum:,,perhapsmoreaccurately:eithertransactionswereconsideredtotakeplacecostlessly,,“firms”,thesewereseenasexogenouslygivensetsoftechnologicallypossiblebinationsofinputsandoutputs,,however,,continuously!,overtheyears,,-therewashardlyanyplaceforthemexceptasformalskeletons,,,,oneeconomistafteranotherthoughttheycouldsaythatobservedeconomicbehaviorwasunsystematic,inefficient,,ofcourse,inascientificquagmire:,basically,waswrongwasthatcertaincruciallyimportantconstraintsonindividualdecisionsandactivitiesweremissingfromthetraditionalanalysis.Themaingapswerefilledinthe1930s,'sdemonstration,thatindividualdecisionsandactivitiesarealwaysrestrictedbythestructureofpropertyrights,andbytransactioncosts.(Sometimebeforethat,Knighthadlaidhisfingeronthestrategic,buttillthenmisunderstoodaspectofthisargument.),ArrowandStiglerbegantoinvestigatethecrucialroleofinformation-orrather,,almostallthepundits,-butforitsscientificvaluetobedemonstrated,,theparadigmmustbeemployedfortheanalysisofimportantmarketphenomena,ofthekindwhichhadrousedthecuriosityofeconomistsschooledintheoldtradition,,,Ithink,,forinstance,thestudyCoasehimselfmadeofthe(non-existing!)-insales,,,however,,'smagnumopuswasthepresentvolume,,,,,heargued,,“contracts”ahouseholdtermintheprofession.Beforeabout1970,thewordhardlyappearedintheindexofaneconomictreatiseortextbook,butsoonitbecameoneofthemostimportantentries.