Coase Theorem

Parisi, Francesco

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Coase Theorem

NEW PALGRAVE DICTIONARY OF ECONOMICS, 2nd ed., L. Blume and S. Durlaufe, eds., Macmillan Ltd., 2007

Minnesota Legal Studies Research Paper No. 07-12

19 Pages Posted: 20 Apr 2007

See all articles by Francesco Parisi

Francesco Parisi

University of Minnesota - Law School; University of Bologna; University of Miami, School of Law

Abstract

The Coase Theorem holds that, regardless of the initial allocation of property rights and choice of remedial protection, the market will determine ultimate allocations of legal entitlements, based on their relative value to different parties. Coase's assertion has occasioned intense debate. This article provides an intellectual history of Coase's fundamental theorem and surveys the legal and economic literature that has developed around it. It appraises the most notable attacks to the Coase Theorem, and examines its methodological implications and normative and practical significance in legal and policy settings.

Keywords: coase theorem

Suggested Citation: Suggested Citation

Parisi, Francesco, Coase Theorem. NEW PALGRAVE DICTIONARY OF ECONOMICS, 2nd ed., L. Blume and S. Durlaufe, eds., Macmillan Ltd., 2007, Minnesota Legal Studies Research Paper No. 07-12, Available at SSRN: https://ssrn.com/abstract=981282