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Fairness, Efficiency, and Externalities
Oleh:
Nelson, Julianne
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
JAPAN AND THE WORLD ECONOMY vol. 7 no. 1 (1995)
,
page 85-104.
Topik:
efficiency
;
fairness
;
efficiency
;
externalities
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ47.5
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
While some recommend the Coase theorem as a guide for choosing among feasible legal rules, others condemn the theorem as intellectually bankrupt. This disagreement arises primarily because the theorem does not suffice to define a unique social contract (and hence a specific theory of rights). To illustrate the scope of necessary assumptions, I use Gauthier's cooperative bargaining solution to resolve the externality problem that arises when track fires destroy crops in nearby fields. By analyzing the problem as specified by Coase, I indicate how assumptions about fairness and the structure of bargaining affect the practical implications of Coase's insights.
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