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Coase Theorem (Empirical Tests)

Author

Listed:
  • Elodie Bertrand

    (ISJPS - Institut des sciences juridique et philosophique de la Sorbonne - UMR 8103 - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Case studies and laboratory experiments testing the Coase theorem, i.e., the optimality of monetary negotiations over externalities, tend to conclude to its validity. However, it is difficult to test the theorem without measuring transaction costs, and these tests stress another obstacle to negotiation over and above these costs: a moral or social prohibition on exchange.

Suggested Citation

  • Elodie Bertrand, 2021. "Coase Theorem (Empirical Tests)," Post-Print hal-03467017, HAL.
  • Handle: RePEc:hal:journl:hal-03467017
    DOI: 10.1007/978-1-4614-7883-6_628-2
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