The Coase Theorem is an idea in law and economics that states that private bargaining will lead to an optimal allocation of resources when two conditions are met: when property rights are well-defined, and when there are no obstacles to voluntary bargaining. This simple and somewhat counterintuitive idea is the foundation of the economic approach to law, but how strong or secure is this foundation?

prior probability will explain why the Prisoner’s Dilemma falsifies the Coase Theorem this Saturday at the University of Puerto Rico. Our talk, which is titled The Parable of the Prisoners, is scheduled to take place at 11:30 am in Room 301 of the UPR Law Library, and Professor Taja-Nia Henderson of Rutgers University will be serving as the paper’s commentator. All are welcome to attend …