• Èêîíà çà ñìÿíà íà åçèêà íà áúëãàðñêè
  • Icon to change language to english

A Response to Brooks' Support of Demsetz on the Coase Theorem

Authors

Keywords
Coase, zero costs, positive costs, wealth effects, indifference curves

Summary
Coase (1960) claimed that in the zero costs world, it would not matter for the allocation of resources which of two disputants were awarded the relevant property rights. Block (1977) disputed this, on the ground that it assumed that both parties would have the wherewithal with which to make the relevant bribe. Demsetz (1977) maintained that Block (1977) failed to reckon with Coase‘s (1960) explicit assumption of no wealth effects. Block (1995) disputed this claim of Demsetz‘s (1977), claiming the Coase (1960) anticipated no such thing. The next round in this debate was Demsetz (1997) who reiterated his position, followed by Block (2000) in a response to Demsetz (1997). Brook (2007) mostly takes Demsetz‘s (1977, 1997) side of this ongoing discussion. The present paper is a rejoinder to Brook (2007), supporting Block (1997, 1995, 2000).

JEL: K3
Pages: 16
DOI: 

More titles

  • Human Action, Part Five, Chapter XXV. The Impossibility of Economic Calculation under Socialism

    The director wants to build a house. Now, there are many methods that can be resorted to. Each of them offers, from the point of view of the director, certain advantages and disadvantages with regard to the utilization of the future building, and results in a different duration of the building's serviceableness; each of them requires other ...

  • Problems in defining the nature and framework of public-private partnership in Bulgaria

    Public-private partnerships (PPP) are part of the general change in the activities of the local authorities in their research for new forms of municipal management. An undeniable fact is that the last few decades have been accompanied by the strengthening of this partnership in countries transforming from planned to market oriented economies. The ...

  • The Hidden in the Text (4, 5, 6)

    "Hidden in the text" is an attempt to draw attention to the social importance of the issue of codes of culture. "Transitions" in modern culture determine themselves consistently, after that the associated change of codes, the change in attitude towards the text, the link between written word and language of visual communication, the abilities to ...