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Property Law and Real Estate

2014

Coase Theorem

Articles 1 - 2 of 2

Full-Text Articles in Law

Remedies And The Psychology Of Ownership, Jeffrey J. Rachlinski, Forest Jourden Dec 2014

Remedies And The Psychology Of Ownership, Jeffrey J. Rachlinski, Forest Jourden

Jeffrey J. Rachlinski

No abstract provided.


Coasean Bargaining In Consumer Bankruptcy, Edward R. Morrison Jan 2014

Coasean Bargaining In Consumer Bankruptcy, Edward R. Morrison

Faculty Scholarship

During my first weeks as a graduate student in economics, a professor described the Coase Theorem as “nearly a tautology:” Assume a world in which bargaining is costless. If there are gains from trade, the Theorem tells us, the parties will trade. The initial assignment of property rights will not affect the final allocation because the parties will bargain (costlessly) to an efficient outcome. “How can that be a theorem?,” I remember thinking at the time.