The Coase Theorem Explained: Coasean Bargaining Definition, Conditions/Assumptions and Examples скачать в хорошем качестве

The Coase Theorem Explained: Coasean Bargaining Definition, Conditions/Assumptions and Examples

There are quite a few Coase theorem fans among those who believe in less government involvement in our day-to-day affairs and as the name "Coasean bargaining" suggests, we are basically looking at a theorem which states that win-win negotiation is a superior option than the alternatives (parties suing one another, for example) when certain conditions are met. However, as Ronald Coase himself made clear, the "when certain conditions" are met part represents the tricky dimension. As explained in this video, the specific assumptions/conditions found in the Coase Theorem are oftentimes not exactly all that relevant to the real world. As such, while Coasean bargaining as a model may seem impeccable on paper, there can be a world of difference between that and examples that pertain to the real economy. From the definition of Coasean bargaining to Coase theorem conditions and assumptions as well as examples, we've covered everything in approximately one minute. All in all: is the Coase theorem perfectly applicable to the real world? Most definitely not but it is most certainly worth including in your (economic) arsenal because considering it useless would be equally wrong :)