Focusing on externalities distracts economists from understanding how bargaining can solve problems without government intervention.
The death this week of Ronald Coase, one of the world's most-cited economists, comes at a time when there is lively debate about the very issue he raised: why neither markets nor government are panaceas.
I am stunned and saddened to learn that Nobel Laureate economist Ronald Coase has died.
The existence of “externalities” — effects (costs or benefits) of market transactions that are not experienced by those involved in the transaction, but are instead experienced by others, those “external” to the transaction — is routinely proffered as a justification for governmental regulation
There has been plenty of confusion surrounding the work of