What is Wrong with the Coase Theorem?
Q1. What is Wrong with the Coase Theorem?Answer: It is Tautological, Under the Standard Definition The Coase Theorem is one of the most celebrated theorems in economics: This theorem, along with his 1937 paper on the nature of the firm which also emphasizes the role of transaction costs, earned [Ronald] Coase the 1991 Nobel Prize in Economics. The Coase theorem is an important basis for most modern economic analyses of government regulation, especially in the case of externalities. (Source) There are many interpretations of the theorem. The Glossary of Economics Terms gives the following definition of the Coase Theorem. Informally
