IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02409115.html
   My bibliography  Save this paper

The three roles of the 'Coase theorem' in Coase's works

Author

Listed:
  • Elodie Bertrand

    (ISJPS - Institut des sciences juridique et philosophique de la Sorbonne - UMR 8103 - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This article aims at understanding Coase's apparently paradoxical attitude towards his eponym ‘theorem'. On the one hand, he judges as excessive the attention devoted to an assertion that makes the assumption of zero transaction costs. On the other, he has never stopped reasserting its largely questioned validity. We explain this puzzle by identifying three roles of the ‘Coase theorem' in his works: heuristic (to bring to light the role of transaction costs), critical (of the Pigovian tradition), and normative (Coase derives policy prescriptions).

Suggested Citation

  • Elodie Bertrand, 2010. "The three roles of the 'Coase theorem' in Coase's works," Post-Print hal-02409115, HAL.
    • Handle: RePEc:hal:journl:hal-02409115
    DOI: 10.1080/09672560903552553
    Note: View the original document on HAL open archive server: https://hal.science/hal-02409115
    as

    Download full text from publisher

    File URL: https://hal.science/hal-02409115/document
    Download Restriction: no
    File URL: https://libkey.io/10.1080/09672560903552553?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    2. Ning Wang, 2003. "Coase on the nature of economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(6), pages 807-829, November.
    3. Nahid Aslanbeigui & Steven G. Medema, 1998. "Beyond the Dark Clouds: Pigou and Coase on Social Cost," History of Political Economy, Duke University Press, vol. 30(4), pages 601-625, Winter.
    4. Baumol, William J, 1972. "On Taxation and the Control of Externalities," American Economic Review, American Economic Association, vol. 62(3), pages 307-322, June.
    5. David Campbell & Matthias Klaes, 2005. "The principle of institutional direction: Coase's regulatory critique of intervention," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(2), pages 263-288, March.
    6. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    7. E. Ray Canterbery & A. Marvasti, 1992. "The Coase Theorem as a Negative Externality," Journal of Economic Issues, Taylor & Francis Journals, vol. 26(4), pages 1179-1189, December.
    8. Demsetz, Harold, 1996. "The core disagreement between Pigou, the profession, and Coase in the analyses of the externality question," European Journal of Political Economy, Elsevier, vol. 12(4), pages 565-579, December.
    9. Pratten, Stephen, 2001. "Coase on Broadcasting, Advertising and Policy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(5), pages 617-638, September.
    10. Coase, R H, 1993. "Law and Economics at Chicago," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 239-254, April.
    11. Coase, R H, 1981. "The Coase Theorem and the Empty Core: A Comment," Journal of Law and Economics, University of Chicago Press, vol. 24(1), pages 183-187, April.
    12. Medema, Steven G., 1999. "Symposium on the Coase Theorem: Legal Fiction: The Place of the Coase Theorem in Law and Economics," Economics and Philosophy, Cambridge University Press, vol. 15(2), pages 209-233, October.
    13. Coase, R H, 1974. "The Lighthouse in Economics," Journal of Law and Economics, University of Chicago Press, vol. 17(2), pages 357-376, October.
    14. Elodie Bertrand, 2006. "The Coasean analysis of lighthouse financing: myths and realities," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(3), pages 389-402, May.
    15. F. H. Knight, 1924. "Some Fallacies in the Interpretation of Social Cost," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 38(4), pages 582-606.
    16. Steven G. Medema, 1994. "The Myth of two Coases: What Coase Is Really Saying," Journal of Economic Issues, Taylor & Francis Journals, vol. 28(1), pages 208-217, March.
    17. Williamson, Oliver E, 1994. "Evaluating Coase," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 201-204, Spring.
    18. Élodie Bertrand, 2006. "La thèse d'efficience du « théorème de Coase ». Quelle critique de la microéconomie ?," Revue économique, Presses de Sciences-Po, vol. 57(5), pages 983-1007.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    2. Élodie Bertrand, 2006. "La thèse d'efficience du « théorème de Coase ». Quelle critique de la microéconomie ?," Revue économique, Presses de Sciences-Po, vol. 57(5), pages 983-1007.
    3. Herbert Hovenkamp, 2011. "Coasean markets," European Journal of Law and Economics, Springer, vol. 31(1), pages 63-90, February.
    4. Steven Medema, 2011. "A case of mistaken identity: George Stigler, “The Problem of Social Cost,” and the Coase theorem," European Journal of Law and Economics, Springer, vol. 31(1), pages 11-38, February.
    5. Antonio Nicita, 2014. "The legacy of R. Coase (1910–2013): toward a theory of institutional 'moving equilibrium'?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(2), pages 93-108, June.
    6. Elodie Bertrand, 2014. "‘The fugitive’: The figure of the judge in Coase's economics," Post-Print hal-03481745, HAL.
    7. Glenn Furton & Adam Martin, 2019. "Beyond market failure and government failure," Public Choice, Springer, vol. 178(1), pages 197-216, January.
    8. Valentiny, Pál, 2018. "Coase-kép másképp: középpontban a közszolgáltatások [Coase otherwise: Public utilities]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 346-381.
    9. Cerin, Pontus, 2006. "Bringing economic opportunity into line with environmental influence: A discussion on the Coase theorem and the Porter and van der Linde hypothesis," Ecological Economics, Elsevier, vol. 56(2), pages 209-225, February.
    10. Alain Marciano, 2010. "Calabresi, "law and economics" and the Coase theorem," ICER Working Papers 26-2010, ICER - International Centre for Economic Research.
    11. Steven G. Medema, 2010. "Ronald Harry Coase," Chapters, in: Ross B. Emmett (ed.), The Elgar Companion to the Chicago School of Economics, chapter 2, Edward Elgar Publishing.
    12. Anetta Čaplánová & Marcel Novák, 2015. "Transakčné náklady, vlastnícke práva a externality - k vedeckému odkazu R. H. Coasea [Transaction Costs, Property Rights and Externalities - on the Contribution of R. H. Coase to Economic]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(2), pages 244-257.
    13. Alain Marciano, 2019. "Ronald H. Coase (1910–2013)," Palgrave Macmillan Books, in: Robert A. Cord (ed.), The Palgrave Companion to LSE Economics, chapter 0, pages 555-577, Palgrave Macmillan.
    14. Peter J. Boettke & Rosolino A. Candela, 2020. "Where Chicago meets London: James M. Buchanan, Virginia Political Economy, and cost theory," Public Choice, Springer, vol. 183(3), pages 287-302, June.
    15. Elodie Bertrand, 2019. "Much ado about nothing? The controversy over the validity of the Coase theorem," Post-Print hal-03479468, HAL.
    16. James McClure & Tyler Watts, 2016. "The Greatest Externality Story (N)ever Told," The American Economist, Sage Publications, vol. 61(2), pages 157-177, October.
    17. Élodie Bertrand & Christophe Destais, 2002. "Le « théorème de Coase », une réflexion sur les fondements microéconomiques de l'intervention publique," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 111-124.
    18. Walter Block, 2010. "Rejoinder To Boettke On Coasean Economics And Communism," Romanian Economic Business Review, Romanian-American University, vol. 5(3), pages 9-30, September.
    19. Walter Block & William Barnett, 2009. "Coase and Bertrand on lighthouses," Public Choice, Springer, vol. 140(1), pages 1-13, July.
    20. Heatley, David, 2011. "Auckland Transport: Institutional Congestion?," Working Paper Series 4080, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-02409115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.