Questions tagged [coasian-bargaining]

Coase's 'theorem' says that under certain conditions (low 'transaction costs', 'full information'?), bargaining can be expected to produce Pareto efficient outcomes. Of course, Coase did not prove a theorem as such. My question, then, is whether…

The wikipedia page has a good summary: Coase developed his theorem when considering the regulation of radio frequencies. Competing radio stations could use the same frequencies and would therefore interfere with each other's broadcasts. The problem…