IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v35y1982i1p53-74.html
   My bibliography  Save this article

The Coase Theorems And The Economic Theory Of Markets And Law

Author

Listed:
  • Cento G. Veljanovski

Abstract

Considerable controversy surrounds the COASE theorem despite the fact that it is generally accepted as valid both in the theory of externalities and the economic analysis of law. A major source of the controversy is the fact that there are a number of versions of the COASE theorem and definitions of transactions costs. It is argued that a proper understanding both of the competitive market model and transaction costs reveals that the COASE theorem is invalid and not part of standard market theory. It is further argued that transaction costs and information costs arising from market uncertainty provide a key to resolving many of the controversies that the theorem has given rise to and following from this that the primary economic function of law in bargaining situations is to increase transaction costs in order to reduce market uncertainty and strategic behaviour.

Suggested Citation

  • Cento G. Veljanovski, 1982. "The Coase Theorems And The Economic Theory Of Markets And Law," Kyklos, Wiley Blackwell, vol. 35(1), pages 53-74, February.
    • Handle: RePEc:bla:kyklos:v:35:y:1982:i:1:p:53-74
    DOI: 10.1111/j.1467-6435.1982.tb01215.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6435.1982.tb01215.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6435.1982.tb01215.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elodie Bertrand, 2019. "Much ado about nothing? The controversy over the validity of the Coase theorem," Post-Print hal-03479468, HAL.
    2. Zattler, Jürgen K., 1998. "Endogene Wachstumstheorie und wirtschaftspolitische Implikaktionen für Entwicklungsländer: The missing link," Discussion Papers in Development Economics 27, Justus Liebig University Giessen, Institute for Development Economics.
    3. Bingyuan Hsiung, 2004. "The Commonality Between Economics and Law," European Journal of Law and Economics, Springer, vol. 18(1), pages 33-53, July.
    4. Teodor Sedlarski & Mina Bazoteva, 2012. "Application of the Economic Analysis of Law to the Regulation of the Drug Retail Market in Bulgaria," Yearbook of the Faculty of Economics and Business Administration, Sofia University, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria, vol. 10(1), pages 153-175, March.
    5. Maeda, Yasuo, 1995. "Comment on "What is the Coase Theorem?" by Leonid Hurwicz," Japan and the World Economy, Elsevier, vol. 7(1), pages 75-78, May.
    6. Élodie Bertrand, 2006. "La thèse d'efficience du « théorème de Coase ». Quelle critique de la microéconomie ?," Revue économique, Presses de Sciences-Po, vol. 57(5), pages 983-1007.
    7. Hurwicz, Leonid, 1995. "What is the Coase Theorem?," Japan and the World Economy, Elsevier, vol. 7(1), pages 49-74, May.
    8. J.A. den Hertog, 2010. "Review of economic theories of regulation," Working Papers 10-18, Utrecht School of Economics.
    9. Elif Cemre Hazıroğlu & Semih Gökatalay, 2016. "Minimum resale price maintenance in EU in the aftermath of the US Leegin decision," European Journal of Law and Economics, Springer, vol. 42(1), pages 45-71, August.
    10. Korkut Erturk, 2016. "Asymmetric Power and Market Failure: Power Hazard in Exchange," Working Paper Series, Department of Economics, University of Utah 2016_02, University of Utah, Department of Economics.
    11. Siegmund, Uwe, 1997. "Warum Privatisierung? Eine Dogmengeschichte der Privatisierungstheorien," Kiel Working Papers 785, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:35:y:1982:i:1:p:53-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.