What Happened on Blackstone Avenue? Exorcising Coase Theorem Mythology

The present paper revisits the path by which Coase came to set down result now generally known as theorem in his 1960 article. I draw on both published record and archival resources an effort clear away some of mist and, it will emerge, dispel mythology. As good traditional story is—thanks no small part Stigler’s hyperbole—the reality is far more interesting, for what tells us about Coase’s our understanding messy process behind how be. For we shall see, out at least three versions result, two them assuredly incorrect, 1959–60 had best a faint sense implications transaction costs conclusion—something he was only put others whom showed original draft 1959 And that fateful evening during converted Chicagoans point view, see extent conversion necessary less than suggests not all believed end evening, argument notwithstanding.