Tag Archives: Coase Theorem

When beautiful models go wrong

No, not those types of models! We mean abstract, mathematical models. Celebrity economist Paul Krugman writes: Suppose you’re making a prediction — and every assertion about how the world works has to involve at least an implicit prediction of something, … Continue reading

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The limits of law: an update on San Francisco’s tour bus ban

A flat-out legal prohibition (e.g. “thou shalt not …”) represents a coercive, non-market approach to a given social problem. So, why aren’t legal bans always effective? Consider, for example, the tour bus ban approved last November by San Francisco’s Municipal Transportation Agency, which … Continue reading

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Thoughts On Northwestern Football Unionization

Originally posted on Cheap Talk:
These are my thoughts and not those of Northwestern University, Northwestern Athletics, the Northwestern football team, nor of the Northwestern football players. As usual, the emergence of a unionization movement is the symptom of a…

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Live Piracy Map

Check out this amazing live piracy map generated by the Commercial Crime Services of the International Chamber of Commerce. (Below, for example, is a partial version of the live piracy map from 2011 identifying the location of all piracy incidents during that … Continue reading

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Another application of the Coase Theorem?

The Coase Theorem is the idea that voluntary transactions are an economically efficient way of solving the problem of harmful effects (or “negative externalities” in the patois of professional economics jargon) and that the outcome of such private bargaining is … Continue reading

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Does the Prisoner’s Dilemma falsify the Coase Theorem?

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 … Continue reading

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“Redskins” forever?

(Note: this post was revised and updated on 5 November 2013) Some (many?) people find the Washington “Redskins” team name and logo to be highly offensive. (What about the Chicago “Blackhawks” (see below) hockey team, by the way?)  What, if … Continue reading

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Mark Zuckerburg is a douche

Facebook has very Coasian bounty program for security researchers (i.e. hackers) who find bugs and other “vulnerabilities” on Facebook: it pays people a minimum of $500 USD to report such bugs to Facebook instead of using them or selling them on … Continue reading

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Are patent trolls efficient?

David Segal has just published this fascinating feature on patent-troll extraordinaire Erich Spangenberg in the Sunday Times under the title “Has Patent, Will Sue.”  In brief, a “patent troll” is someone who buys patents and then sues firms for infringing its patents. … Continue reading

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Terry Anderson on “free market environmentalism”

Economist Terry L. Anderson has been lecturing on “Environmental Markets” these last two days at the Law & Economics Institute sponsored by George Mason University. His argument is simple: instead of treating the environment as an open-access commons, we are … Continue reading

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