Abstract
When do legal rules matter for efficiency? This chapter presents and discusses the Coase Theorem (1960), which is one of the most important and remarkable findings in economics. The theorem states that under certain conditions legal rules will have no bearing on the economic efficiency of resource allocation. As long as there is some legal rule in place, then an efficient outcome will ensue.
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© 2012 Alex Robson
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Robson, A. (2012). The Coase Theorem. In: Law and Markets. Palgrave Macmillan, London. https://doi.org/10.1057/9780230354944_3
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DOI: https://doi.org/10.1057/9780230354944_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32031-8
Online ISBN: 978-0-230-35494-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)