Questions tagged [coasian-bargaining]
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5 questions
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Are ALL externalities inefficient?
Suppose Frank owns a factory which creates noise that disturbs nearby homeowner Hank. This noise pollution is an externality. Is it also necessarily Pareto inefficient? If I recall my college ...
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Has anyone formalised Coase's argument?
Coase's 'theorem' says that under certain conditions (low 'transaction costs', 'full information'?), bargaining can be expected to produce Pareto efficient outcomes. Of course, Coase did not prove a ...
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Does the Coase Theorem account for malicious externalities?
The wikipedia page has a good summary:
Coase developed his theorem when considering the regulation of radio frequencies. Competing radio stations could use the same frequencies and would therefore ...
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Relationship between Nash and Coasian bargaining solutions
What is the relationship or difference between Nash and Coasian bargaining solutions? It is well-known that the Nash bargaining solution satisfies certain basic axioms. Which of these does the Coasian ...
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Pricing a negative externality under high uncertainty and severe non-linearity
Take a negative externality such as excess greenhouse gas emissions.
We know some awkward things about the economic cost of this externality:
There is fairly large uncertainty about the timing of ...
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