Transaction Costs and the Robustness of the Coase Theorem

@article{Anderlini2000TransactionCA,
  title={Transaction Costs and the Robustness of the Coase Theorem},
  author={L. Anderlini and L. Felli},
  journal={Wiley-Blackwell: Economic Journal},
  year={2000}
}
  • L. Anderlini, L. Felli
  • Published 2000
  • Economics
  • Wiley-Blackwell: Economic Journal
  • This paper explores the extent to which the presence of ex-ante transaction costs may lead to failures of the Coase Theorem. In particular we identify and investigate the basic 'hold-up problem' which arises whenever the parties to a Coasian negotiation have to pay some ex-ante costs for the negotiation to take place. We then show that a 'Coasian solution' to this hold-up problem is not available. This is because a Coasian solution to the hold-up problem typically entails a negotation about the… CONTINUE READING
    42 Citations
    Transaction Costs: Economies of Scale, Optimum, Equilibrium and Efficiency
    • PDF
    Caps on Coasean Transfers
    • 1
    • PDF
    Optimal Ownership of Public Goods in the Presence of Transaction Costs
    • 2
    • Highly Influenced
    • PDF

    References

    SHOWING 1-10 OF 76 REFERENCES
    Costly Coasian Contracts
    • 22
    Costly Contingent Contracts
    • 5
    • PDF
    Option Contracts and Renegotiation - A Solution to the Hold-Up Problem
    • 477
    • PDF
    Complexity and Renegotiation: A Foundation for Incomplete Contracts
    • 397
    • PDF
    Costly Bargaining and Renegotiation
    • 65
    • PDF
    Renegotiation-Proof Implementation and Time Preferences
    • 82
    Incomplete Contracts and Renegotiation
    • 1,571
    Power in a Theory of the Firm
    • 1,080
    • PDF