The ‘Coase Theorem’ vs. Coase theorem proper: How an error emerged and why it remained uncorrected so long
AbstractThe question of what is the 'Coase Theorem?' has no simple answer. The majority of articles covering a variety of issues on the 'Coase Theorem' still misrepresent the main message of Coase (1960). The remaining controversy over the 'Coase Theorem' is because the literature on Coase (1960) has been locked into a pathway which was set out by Stigler’s 1996 book, The Theory of Price. Even almost 50 years after the publication of Coase’s original article, the consequence of the initial condition under which Coase’s contribution was first formulated (Stigler 1966) is not perfectly eliminated. The evolution of the 'Coase Theorem' has now become an example to intellectual path dependence in economics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37936.
Date of creation: 2010
Date of revision:
Ronald Coase; 'The Problem of Social Cost' (1960); The 'Coase Theorem; ' George Stigler; Replication Failure; Intellectual Path Dependence;
Find related papers by JEL classification:
- B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
- B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frech, H E, III, 1979. "The Extended Coase Theorem and Long Run Equilibrium: The Nonequivalence of Liability Rules and Property Rights," Economic Inquiry, Western Economic Association International, vol. 17(2), pages 254-68, April.
- Stephanie Rosenkranz & Patrick W. Schmitz, 2007.
"Can Coasean Bargaining Justify Pigouvian Taxation?,"
London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
- Stephanie Rosenkranz & Patrick W. Schmitz, 2004. "Can Coasean Bargaining Justify Pigouvian Taxation?," Working Papers 04-21, Utrecht School of Economics.
- Stephanie Rosenkranz & Patrick W. Schmitz, 2006. "Can Coasean bargaining justify Pigouvian taxation?," Bonn Econ Discussion Papers bgse7_2006, University of Bonn, Germany.
- Rosenkranz, Stephanie & Schmitz, Patrick W., 2004. "Can Coasean Bargaining Justify Pigouvian Taxation?," CEPR Discussion Papers 4263, C.E.P.R. Discussion Papers.
- Coase, R H, 1974. "The Market for Goods and the Market for Ideas," American Economic Review, American Economic Association, vol. 64(2), pages 384-91, May.
- Yalcintas, Altug, 2010. "Intellectual Paths And Pathologies: How Small Events In Scholarly Life Accidentally Grow Big," Journal of the History of Economic Thought, Cambridge University Press, vol. 32(04), pages 621-622, December.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Michael Butler & Robert Garnett, 2003. "Teaching the coase theorem: Are we getting it right?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 31(2), pages 133-145, June.
- Hovenkamp, Herbert, 1991. "Legal Policy and the Endowment Effect," The Journal of Legal Studies, University of Chicago Press, vol. 20(2), pages 225-47, June.
- Usher, Dan, 1998. "The Coase theorem is tautological, incoherent or wrong," Economics Letters, Elsevier, vol. 61(1), pages 3-11, October.
- Charness, Gary & Frechette, Guillaume R. & Qin, Cheng-Zhong, 2007. "Endogenous transfers in the Prisoner's Dilemma game: An experimental test of cooperation and coordination," Games and Economic Behavior, Elsevier, vol. 60(2), pages 287-306, August.
- Stigler, George J & Friedland, Claire, 1975. "The Citation Practices of Doctorates in Economics," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 477-507, June.
- Hoffman, Elizabeth & Spitzer, Matthew L, 1982. "The Coase Theorem: Some Experimental Tests," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 73-98, April.
- Aivazian, Varouj A & Callen, Jeffrey L, 1981. "The Coase Theorem and the Empty Core," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 175-81, April.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
- Halpin, Andrew, 2007. "Disproving The Coase Theorem?," Economics and Philosophy, Cambridge University Press, vol. 23(03), pages 321-341, November.
- Coase, R H, 1993. "Law and Economics at Chicago," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 239-54, April.
- Mark Cohen & V. Santhakumar, 2007. "Information Disclosure as Environmental Regulation: A Theoretical Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(3), pages 599-620, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.