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Rethinking of Coase Theorem: Externalities and Uncertainty

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  • Kuzmin, Evgeny A.
  • Semyonovykh, Sergei M.

Abstract

A behaviour of economic agents in many respects depends on taking into account those conditions that have appeared around them. Traditionally, to such conditions, researchers have referred the uncertainty and factors of the institutional control, often projected on a value of the transaction costs. Studies in stimulants for any form of the agents’ behaviour lead us to an analysis of the Coase theorem, which is expected to explain a number of similar regularities. However, ambiguous approaches to the theorem interpretation generate conflicts in a perception and identification of externalities. It is a solution to this challenge, which is a focus of this research. In a critical review of works by Coase and his followers, the theorem statement has been made clearer; we have also put forward a hypothesis on an origin of the externalities and introduced additional criteria to identify them. The paper has given a scientific rationale for an author's assumption that the utility of impure goods depends on the vector of the externalities, which ultimately determines the stratification in a field of the externalities (positive or negative).

Suggested Citation

  • Kuzmin, Evgeny A. & Semyonovykh, Sergei M., 2015. "Rethinking of Coase Theorem: Externalities and Uncertainty," MPRA Paper 67350, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:67350
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    References listed on IDEAS

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    1. Kuzmin, E. A., 2012. "Uncertainty & Certainty in Management of Organizational-Economic Systems," MPRA Paper 42006, University Library of Munich, Germany.
    2. Evgeny A. Kuzmin & Sergei M. Semyonovykh, 2015. "Rethinking of Coase Theorem: Externalities and Uncertainty," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 875-883.
    3. Regan, Donald H, 1972. "The Problem of Social Cost Revisited," Journal of Law and Economics, University of Chicago Press, vol. 15(2), pages 427-437, October.
    4. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    5. Coase, R. H., 1995. "Essays on Economics and Economists," University of Chicago Press Economics Books, University of Chicago Press, number 9780226111032.
    6. Shapiro, David L., 1974. "A note on rent and the Coase theorem," Journal of Economic Theory, Elsevier, vol. 7(1), pages 125-128, January.
    7. Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
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    1. Evgeny A. Kuzmin & Sergei M. Semyonovykh, 2015. "Rethinking of Coase Theorem: Externalities and Uncertainty," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 875-883.

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    More about this item

    Keywords

    Externalities; Coase Theorem; Uncertainty;

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General

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