Background
COASE, Ronald Harry was born in 1910 in Middlesex, England.
COASE, Ronald Harry was born in 1910 in Middlesex, England.
Bachelor of Commerce, Doctor of Science University London, 1932, 1951.
Professor, Universities Buffalo,
1951-1958, Viriginia, 1958-1964, Chicago,
1964-1979. Retired. Professor Emeritus Economics, Senior Fellow Law Economics, University Chicago Law School, since 1979.
Contribution to Economics:
His valuable contributions to the discipline of economics have been placed very highly and find relevance even today.
"The nature of the firm" is the article that was published in 1937. The purpose of this article was to explain the existence of the firm and find reasons that predetermine the scope of its activities. To explain why firms exist and what they do, he introduces the concept of transactions costs. "The problem of social cost" is another famous article. He put forward the logic, now entitled “The Coase Theorem”. The theorem states that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights. Coase Theorem doesn’t work:
1. When transaction costs are high.
2. Imperfect information or bluffing.
3. When too many parties are involved.
"The Federal Communications Commission"
Coase also wrote an article, published in 1959, called The Federal Communications Commission which discussed the procedures followed by the Federal Communication Commission. The article suggested that it would be more efficient to award the use of radio spectrum to the highest bidder (as opposed to paying for a license). He also answered the question of exactly what property rights would be acquired by the highest bidder in detail.
Monopoly and durable goods
The “Coase Conjecture” (1972) was an informal argument that durable goods Monopolies, that can quickly reduce their prices as sales are made, will set price at marginal cost. These firms do not have market power because they are unable to commit to not lowering their prices in future periods.
Fellow: European Academy
American Economic Association (distinguished)
British Academy (correspondent)
American Academy Arts & Scis.; International Society New Institutional Econs. (founding president 1997)
Mont Pelerin Society
Royal Economic Society
Transactions costs and property rights
