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Coase Theorem (Empirical Tests)

Encyclopedia of Law and Economics

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Abstract

This entry examines three classic tests of the Coase theorem: two empirical studies on the most famous examples of externalities – Coase’s ranchers and farmers (Ellickson, Stanford Law Rev. 38(3):623–687, 1986) and Meade’s bees (Cheung, J Law Econ 16(1):11–33, 1973) – as well as the seminal laboratory experiments of Hoffman and Spitzer (J Law Econ 25(1):73–98, 1982). I will insist on the difficulty of testing the theorem without measuring transaction costs, and on another obstacle to negotiation over and above these costs: a moral or social prohibition on exchange.

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  1. CNRS and University Paris 1 Panthéon-Sorbonne (ISJPS, UMR 8103), 9 rue Malher, 75004, Paris, France

    Elodie Bertrand

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  1. Elodie Bertrand
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  1. Montpellier, France

    Alain Marciano

  2. Dept DiGSPES, Univ del Piemonte Orientale Dept DiGSPES, Alessandria, Italy

    Giovanni Battista Ramello

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Bertrand, E. (2017). Coase Theorem (Empirical Tests). In: Marciano, A., Ramello, G. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_628-1

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  • DOI: https://doi.org/10.1007/978-1-4614-7883-6_628-1

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Chapter history

  1. Latest

    Coase Theorem (Empirical Tests)
    Published:
    04 December 2021

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_628-2

  2. Original

    Coase Theorem (Empirical Tests)
    Published:
    07 July 2017

    DOI: https://doi.org/10.1007/978-1-4614-7883-6_628-1

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