The Coase Theorem as a Negative Externality

Canterbery, E Ray; Marvasti, Akbar

doi:10.1080/00213624.1992.11505366

Cited by 23 publications

(11 citation statements)

References 5 publications

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“…Practicality (e.g. Canterbery and Marvasti (1992)). Even if it is true that costless bargaining with full property rights produces efficiency, many economists have argued that this is of little practical value, since most market failures which the Coase Theorem addresses refer to situations where property rights are very difficult to define precisely or in a way that that is legally enforceable (e.g.…”

Section: The Coase Theorem and Its Discontentsmentioning

confidence: 99%

The Champions League and the Coase Theorem

Szymanski

2010

Football Economics and Policy

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The Coase Theorem is both one of the simplest and most profound ideas in economics. Coase's insight was first expressed in print as a theorem by George Stigler, following the publication of the famous article "The Problem of Social Cost" by Nobel Laureate Ronald Coase (1960). Stigler stated it thus: "with zero transactions costs, private and social costs will be equal". In this paper the Coase Theorem is approached through the medium of a sports league. While Coase's article dates from 1960, a colleague at Chicago University published a discussion of the market for baseball players in 1956 which almost completely anticipates the more famous paper (Rottenberg (1956)).

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Section: The Coase Theorem and Its Discontentsmentioning

confidence: 99%

The Champions League and the Coase Theorem

Szymanski

2010

Football Economics and Policy

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“…It has even been asserted (Canterbery andMarvasti, 1992, p. 1186) that, in his recent comments regarding the import of transaction costs, Coase has "shifted his argument" since the writing of "The Problem of Social Cost." It has even been asserted (Canterbery andMarvasti, 1992, p. 1186) that, in his recent comments regarding the import of transaction costs, Coase has "shifted his argument" since the writing of "The Problem of Social Cost."…”

Section: The Central Themes Of Coase's Social Cost Analysismentioning

confidence: 99%

Of Pangloss, Pigouvians and Pragmatism: Ronald Coase and Social Cost Analysis

Medema¹

1996

J Hist Econ Thought

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The laissez-faire welfare theory of classical economics was very much concerned with demonstrating the optimality of the competitive market system, or, more generally, the harmony between individual and social interests. Under the influence of J. S. Mill and Henry Sidgwick, however, this view gradually began to erode. Sidgwick (1901), for example, pointed to a number of factors, including what we now call externalities, that can cause individually-optimal behavior to diverge from the social optimum, and suggested that these potentially call for governmental corrective measures. Alfred Marshall carried this discussion a bit further, but it was through A. C. Pigou's analysis—particularly in The Economics of Welfare (1932)—that the theory of market failure, and the need for government correction of these failures, reached full flower. His work formed the foundation for “modern” welfare economics. The contrast between the “old” and the “modern” welfare economics was pointed out by James Buchanan:

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“…The misunderstanding of the PSC was (and perhaps still is) so widespread that it has been thought there were two 'Coases', the one of the 'Coase theorem' and the one of the positive transaction costs world (Canterbery and Marvasti, 1992). At the beginning of the 1990s, McCloskey, who had understood that the PSC was mainly about the introduction of positive transaction costs, explained she has 'given up hope of persuading any other economist of this interpretation, since the only economist who shares it is R. H. Coase' (McCloskey, 1993, n. 2, as cited in McCloskey, 1998.…”

Section: Introduction Of Positive Transaction Costsmentioning

confidence: 99%

The three roles of the ‘Coase theorem’ in Coase's works

Bertrand¹

2010

The European Journal of the History of Economic Thought

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This article aims at understanding Coase's apparently paradoxical attitude towards his eponym 'theorem'. On the one hand, he judges as excessive the attention devoted to an assertion that makes the assumption of zero transaction costs. On the other, he has never stopped reasserting its largely questioned validity. We explain this puzzle by identifying three roles of the 'Coase theorem' in his works: heuristic (to bring to light the role of transaction costs), critical (of the Pigovian tradition), and normative (Coase derives policy prescriptions).

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The Coase Theorem as a Negative Externality

Cited by 23 publications

References 5 publications

The Champions League and the Coase Theorem

The Champions League and the Coase Theorem

Of Pangloss, Pigouvians and Pragmatism: Ronald Coase and Social Cost Analysis

The three roles of the ‘Coase theorem’ in Coase's works

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