Friday15Sep 2017

ESI/IFREE Lecture-Ted Bergstrom,PhD-When Was Coase Right?

Friday, September 15, 2017 3:00pm - 4:30pm
2017-09-15 15:00 2017-09-15 16:30 America/Los_Angeles ESI/IFREE Lecture-Ted Bergstrom,PhD-When Was Coase Right? WH 116 ESI Classroom Cyndi Dumas

Free to attend

WH 116

ESI Classroom

Staff, Faculty, and Students

are invited to attend.

Abstract: The “Coase theorem" asserts that in the absence of transaction costs, parties to an externality will bargain to an efficient outcome. It also claims that the resulting level of externality-generating is independent of initial assignment of rights. It is well-known that Coase's second claim is true if utility is quasi-linear so that the valuation of externalities does not depend on wealth. This paper finds a class of preferences for which Coase's second claim is true when there are wealth effects. It presents a necessary and sufficient condition for Coase's second claim and discusses applications of this result.

Bio: I was born and raised on a Minnesota farm, about 25 miles north of Lake Woebegone.  Went to Carleton College in Northfield Minn, majored in math. (1957-1962),  My math teacher  at Carleton said there was such a thing as mathematical economics and that Arrow at Stanford would be a good person to study with. So I did that. (1962-1966).  My first job was at  Washington U St. Louis (1966-74), then  University of Michigan, (1975-96), now at UC Santa Barbara (1996-).


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