Coase (Journal of Low and Economics 17(2):185–213, 1974) failed to appreciate that the construction and maintenance of nineteenth-century lighthouses were in part financed by British taxpayers. Bertrand (Cambridge Journal of Economics 30:389–402, 2006) rightly calls him to account. While agreeing with Bertrand’s conclusion, we dispute her reasoning and argue that lighthouses nevertheless could ...

The source of disagreement between Pigou, the profession, and Coase in regard to the externalities is thought to be transaction cost. Coase shows that the traditional prescription for remedying externality problems can be wrong if transaction cost is positive. But Pigou did recognize that positive transaction cost played a role in creating externality problems even though the profession later f...

In 1937, Ronald Coase argued that firms will exist only in environments in which firms perform better than markets could. To create space for firms, Coase suggested that some environments might be plagued by “transaction costs” that cause markets to perform poorly. Coase’s paper was to become the cornerstone of the economic theory of the firm (i.e., the “make or buy” decision: which activities ...

INTRODUCTION ............................................................................. 2190 I. EXAMPLES OF NEW PROPERTY RIGHTS ....................................... 2193 A. Spectrum ................................................................................... 2194 1. Shannon’s Law and the Cumulative Nature of Interference ................................................... 2194 2. G...

This article offers a brief review of the Coase Theorem in context policy planning. concept first revolutionized regulatory approach to environmental problem because it advocated how bargaining mechanisms correct externalities without any pre-condition on entitlement assignment. However, given set non-negligible constraints imposed by empirics i.e., non-null transaction costs and asymmetric inc...

Coase always expressed dissatisfaction with neo-classical economics and advocated for a new approach. Rather than using toy mathematical models built from unrealistic, idealized assumptions, Coase preferred to study real-world contexts, including actual legal cases. He demonstrated the utility of his approach in ‘The Problem of Social Cost’. Yet almost all of Coase’s contemporaries completely i...