Coase and Bertrand on Lighthouses
13 Pages Posted: 8 Jul 2011
Date Written: July 6, 2011
Coase (Journal of Low and Economics 17(2):185-213, 1974) failed to appreciate that the construction and maintenance of nineteenth-century lighthouses were in part financed by British taxpayers. Bertrand (Cambridge Journal of Economics 30:389-402, 2006) rightly calls him to account. While agreeing with Bertrand’s conclusion, we dispute her reasoning and argue that lighthouses nevertheless could have been supplied by the private sector.
Suggested Citation: Suggested Citation