How to negotiate with Coase?
This article analyses the bargaining side of the Coase theorem in a 3-player strategic framework. We consider several bilateral bargaining protocols between two firms polluting one household (the victim). Our results show that when property rights are given to the victim, he prefers to bargain separetely and simultaneously with the two firms. However when property rights are given to the firms, they prefer to bargain sequentially with the household. This last configuration yields a non optimal outcome and invalidates the bargaining Coase theorem.
|Date of creation:||2011|
|Contact details of provider:|| Postal: Avenue Léon Duguit, 33608 Pessac Cedex|
Phone: +33 (0)22.214.171.124.75
Fax: +33 (0)126.96.36.199.47
Web page: http://gretha.u-bordeaux4.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:grt:wpegrt:2011-02. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emmanuel Petit)
If references are entirely missing, you can add them using this form.