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Coase Contracts and the Producer's Incentive to Innovate

Author

Listed:
  • Fritsch, Michael
  • Wein, Thomas

Abstract

The paper analyzes the dynamic efficiency of the Coase solution to the problem of negative externalities. We demonstrate that with respect to the incentive of the producer to develop or to adopt a superior technology the so-called "symmetry thesis" does not hold for all types of contracts.

Suggested Citation

  • Fritsch, Michael & Wein, Thomas, 1998. "Coase Contracts and the Producer's Incentive to Innovate," Freiberg Working Papers 1998/05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    • Handle: RePEc:zbw:tufwps:98/5
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    Keywords

    Externalities; Contracts;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • K30 - Law and Economics - - Other Substantive Areas of Law - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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