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The Coase Theorem has been used by jurists and legal scholars in the analysis and resolution of disputes involving both contract law and tort law. In contract law, the Coase theorem is often used as a method to evaluate the relative power of the parties during the negotiation and acceptance of a traditional or classical bargained-for contract.
In law and economics, the Coase theorem (/ ˈ k oʊ s /) describes the economic efficiency of an economic allocation or outcome in the presence of externalities. The theorem states that if trade in an externality is possible and there are sufficiently low transaction costs , bargaining will lead to a Pareto efficient outcome regardless of the ...
The Coase conjecture, developed first by Ronald Coase, is an argument in monopoly theory.The conjecture sets up a situation in which a monopolist sells a durable good to a market where resale is impossible and faces consumers who have different valuations.
I argued in such a world the allocation of resources would be independent of the legal position, a result which Stigler dubbed the "Coase theorem". [22] Thus, while Coase himself appears to have considered the "Coase theorem" and Coasian solutions as simplified constructs to ultimately consider the real 20th-century world of governments, laws ...
Hand stated: [T]he owner's duty, as in other similar situations, to provide against resulting injuries is a function of three variables: (1) The probability that she will break away; (2) the gravity of the resulting injury, if she does; (3) the burden of adequate precautions.
Comparative advantage in an economic model is the advantage over others in producing a particular good.A good can be produced at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. [1]
Arrow's theorem is not related to strategic voting, which does not appear in his framework, [3] [1] though the theorem does have important implications for strategic voting (being used as a lemma to prove Gibbard's theorem [15]). The Arrovian framework of social welfare assumes all voter preferences are known and the only issue is in ...
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