Psychology Dictionary of ArgumentsHome
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| Coase Theorem: The Coase Theorem, proposed by economist Ronald Coase, asserts that in the absence of transaction costs, bargaining between parties will lead to an efficient allocation of resources regardless of the initial assignment of property rights, as long as property rights are well-defined and parties can negotiate freely. The Coase theorem explains for the first time why companies are formed._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Sean P. Sullivan on Coase Theorem - Dictionary of Arguments
Parisi I 90 Coase theorem/Sullivan/Holt: In just one of its many modern forms, the Coase Theorem posits that, in the absence of transactions costs and various other impediments to private reallocation of legal entitlements, the ultimate conduct of individuals will be socially efficient irrespective of the initial allocation of rights and the nature of rights as affording liability or property rule protection (Coase, 1960)(1).* Today, the implications of this insight shape the jurisprudence of many areas of law, particularly in regard to the protection and allocation of property rights.** The wide-spanning influence and celebrated status of the Coase Theorem have motivated many attempts to test its properties and conclusions, often with the aid of economic experiments. The first and most influential work applying experimental methods in studying the Coase Theorem is that of Hoffman and Spitzer (1982)(6). The methodology of this early study has become a jumping-off point for much of the subsequent literature. >Coase theorem/Economic theories. * For a compilation of different versions of the Coase Theorem, see Medema and Zerbe (2000(2), pp. 837-838). For commentary on the original meaning and evolution of the Theorem, see Zerbe and Medema (1997)(3) and McCloskey (1997)(4). ** For example, the Coase Theorem as portrayed in the "property rule" and "liability rule" analysis of Calabresi and Melamed (1972)(5) informs modern understanding of contract law, tort law, property law, and the choice of remedies generally. 1. Coase, R. H. (1960). “The Problem of Social Cost.” Journal of Law and Economics 3: 1–44. 2. Medema, S. G. and R. O. Zerbe (2000). “The Coase Theorem,” in B. Bouckaert and G. De Geest, eds., Encyclopedia of Law and Economics, Vol. I 836–892. Cheltenham: Edward Elgar. 3. Zerbe, R. O. J. and S. G. Medema (1997). “Ronald Coase, the British Tradition, and the Future of Economic Method,” in S. G. Medema, ed., Coasean Economics: Law and Economics and the New Institutional Economics, 209–238. Boston, MA: Springer. 4. McCloskey, D. N. (1997). “The Good Old Coase Theorem and the Good Old Chicago School: A Comment on Zerbe and Medema,” in S. G. Medema, ed., Coasean Economics Law and Economics and the New Institutional Economics, 239–248. Boston, MA: Springer. 5. Calabresi, G. and A. D. Melamed (1972). “Property Rules, Liability Rules, and Inalienability: One View of the Cathedral.” Harvard Law Review 85(6): 1089–1128. 6. Hoffman, E. and M. L. Spitzer (1982). “The Coase Theorem: Some Experimental Tests.” Journal of Law and Economics 25(1): 73–98. Sullivan, Sean P. and Charles A. Holt. „Experimental Economics and the Law“ In: Parisi, Francesco (ed) (2017). The Oxford Handbook of Law and Economics. Vol 1: Methodology and Concepts. NY: Oxford University Press._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Sullivan, Sean P. Parisi I Francesco Parisi (Ed) The Oxford Handbook of Law and Economics: Volume 1: Methodology and Concepts New York 2017 |
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> Counter arguments against Sullivan
> Counter arguments in relation to Coase Theorem
