W/R/T Cuba specifically, I thought policy was basically dictated by the powerful anti-Castro émigré community in FL. Am I wrong on that count?
In general, I like your transaction-cost minimization not utility maximalization thesis, but I don't think it holds in this case.
Curtiss
> The nonsensical US policy toward Cuba is a good
> example. This policy makes no economic sense
> whatsoever, and it actually hurts US business
> interests (e.g. agriculture) which would profit
> from trading with Cuba. However, any administration
> attempting to change this policy would immediately
> be targeted by the opposition to score a few easy
> points by making a "soft on communism" charge.