Foundations of Law and Economics
The Problem of Social Cost
Ronald H. Coase
- Year
- 1960
- Venue
- Journal of Law and Economics
- Level
- Introductory
Summary
Reframes externality problems as reciprocal conflicts over resource use rather than one-sided harms. The article argues that, when bargaining is costly, legal rules affect the allocation of resources by assigning entitlements, shaping negotiation, and determining which institutional arrangement can reduce the total social cost of conflicting activities.
Citation
Ronald H. Coase. "The Problem of Social Cost." Journal of Law and Economics, 1960.
DOI: 10.1086/466560
BibTeX
@article{Coase1960The,
title = {The Problem of Social Cost},
author = {Ronald H. Coase},
year = {1960},
journal = {Journal of Law and Economics},
doi = {10.1086/466560},
url = {https://www.journals.uchicago.edu/doi/10.1086/466560}
}