Coase’s Theorem

Business, Legal & Accounting Glossary

Definition: Coase’s Theorem


Coase’s Theorem


Full Definition of Coase’s Theorem


An economic theorem formulated by Ronald Coase, stating that if property rights are well defined, bargaining will help to even out problems caused by the effects one party’s actions on another party. The theorem claims that parties who stand to gain more will offer more to parties that do not benefit as much, leading to balance.


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Definition Sources


Definitions for Coase’s Theorem are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th November, 2021 | 0 Views.