"Law and Economics"

Participation in this forum has to comply with a few rules:

• Contributions which do not deal with topics like "economics analysis of law" or "economic policy" will be deleted.
• You do not have to register with forum romanum.
• For a registration, you need a working Email address.
• No one has a right that his contribution will be (or remains) posted.
• The ForumMaster reserves the right to delete contributions at his own discretion.
• All contributions reflect only the personal opinion of their author.
• If you participate, you implicitly declare that you agree with these rules.

RE: coase-prohibitively high TAC

by Kirstein on 27 Jul. 2008 11:39 Hi, the term "income" has been used a bit ambiguously here. In the figure, it represents one of the two goods under consideration ("clean air" and "monetary income"), in the phrasing that briefly repeats the Coase theorem, it represents the utility level of the players (if this can be measured in monetary terms, it is justified to call it income as well). Obviously, the utility level (or: total income) of the players in the smoking/no smoking example depend on the initial distribution of property rights if TAC are prohibitively high. Best regards RK Web search, Forum search for coase prohibitively high TAC