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I've done some history of thought research into the origins of Industrial Organization. I consider the father of IO to be Gardiner Means. Means is best known for the "Administered Price Hypothesis" which noted that in highly concentrated industries price changes are infrequent unlike competitive industries where prices vary more or less continually. This is relevant the discussion of Chicago School and Stigler in the post because Stigler was an outspoken opponent of Adminstered Prices. When inflation arose as a political issue in the late 50s and early 60s Means suggested Administered Prices explained Inflation in the face of weak demand. Stigler airily dismissed the Hypothesis as already disconfirmed. In fact empirical results from the 1930s supported it. Of course, the suggestion of non-market price setting is anathema to Chicago economists. Suggesting a mechanism which results in "sticky" prices is a grave threat to the notion of rapid adjustment to changing supply and demand.

Stigler's intellectual dishonesty and that of Cochran which you also highlight are consistent with a long tradition in "free market"/Austrian economics. Murray Rothbard once gave a speech where he said that supporters of free markets should be able to ignore moral limitations and lie, if necessary, in making the case for them. One of the Austrian grad student groupies in the department was shocked that such a "moral man" would make the statement.

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The scariest thing about the lab-escape "theory" is the probable impact on the already bad anti-Asian violence we have been seeing. It wouldn't take much credibility to really amp this up. And the bar for credibility of the most dangerous fringe groups is very low indeed.

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