Economics at your fingertips  

On a Fallacy in the Coase Theorem and the Theorem of Transaction Costs Substitution

Cheung Steven N. S. ()
Additional contact information
Cheung Steven N. S.: University of Hong Kong, Pok Fu Lam, Hong Kong

Man and the Economy, 2020, vol. 7, issue 2, 11

Abstract: This paper first presents a historical account of the origin of the Coase Theorem. It then elaborates its significance in explaining the working of economic institutions. After expounding the concepts of transaction cost and rent dissipation, it points out an error in the Coase Theorem. Lastly, the paper propounds the Theorem of Transaction Costs Substitution as an extended and general version of the Coase Theorem.

Keywords: Coase theorem; market price; rent dissipation; theorem of transaction costs substitution; transaction cost (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1515/me-2020-0013

Access Statistics for this article

Man and the Economy is currently edited by Ning Wang

More articles in Man and the Economy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2021-01-18
Handle: RePEc:bpj:maneco:v:7:y:2020:i:2:p:11:n:1