Toward an Asymmetric Coase Theorem

16 Pages Posted: 28 Sep 2010

See all articles by Barbara Luppi

Barbara Luppi

University of St. Thomas School of Law; Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics

Francesco Parisi

University of Minnesota - Law School; University of Bologna

Date Written: September 28, 2010

Abstract

Various reformulations of the Coase theorem have developed normative corollaries on the choice of optimal remedies in the presence of positive transaction costs. In this article, we consider the extent to which these propositions are affected by the presence of asymmetric transaction costs, and we offer a reformulation of the Coase theorem which takes into account asymmetrical transaction costs. Our analysis combines several insights from the existing literature on property-type versus liability-type remedies, identifying the conditions for the superiority of each type of remedy. Further, we consider the possible use of mixed remedies and identify the optimal scope of such solution.

Keywords: Coase Theorem, Property-Type Remedies, Liability-Type Remedies

JEL Classification: K10, K11, K19, D62, D70

Suggested Citation

Luppi, Barbara and Parisi, Francesco, Toward an Asymmetric Coase Theorem (September 28, 2010). Minnesota Legal Studies Research Paper No. 10-55. Available at SSRN: https://ssrn.com/abstract=1684062 or http://dx.doi.org/10.2139/ssrn.1684062

Barbara Luppi

University of St. Thomas School of Law

2115 Summit Avenue
Saint Paul, MN 55105
United States

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics ( email )

Viale Berengario 51
41100 Modena, Modena 41100
Italy

Francesco Parisi (Contact Author)

University of Minnesota - Law School ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States

University of Bologna ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
171
rank
171,817
Abstract Views
1,046
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information