Coase theorem
E96716
The Coase theorem is an economic theory stating that if property rights are well-defined and transaction costs are negligible, private bargaining will lead to an efficient allocation of resources regardless of the initial assignment of rights.
All labels observed (3)
| Label | Occurrences |
|---|---|
| Coase theorem canonical | 9 |
| The Problem of Social Cost | 1 |
| coase theorem | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T827221 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Coase theorem Context triple: [Chicago School economics, notableConcept, Coase theorem]
-
A.
The Economics of Welfare
The Economics of Welfare is a foundational 1920 economics treatise by Arthur Cecil Pigou that systematically develops welfare economics and the concept of externalities to analyze the role of government in correcting market failures.
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B.
Nash bargaining solution
The Nash bargaining solution is a foundational concept in game theory that defines a fair and efficient outcome for two-party bargaining problems based on axioms of rationality and symmetry.
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C.
Rubinstein bargaining model
The Rubinstein bargaining model is a foundational game-theoretic framework that analyzes how two parties reach agreement over time through alternating offers under the influence of impatience and strategic delay.
-
D.
Pigouvian taxes
Pigouvian taxes are corrective taxes designed to address negative externalities by aligning private costs with social costs, thereby improving overall economic efficiency.
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E.
On Equilibrium
On Equilibrium is a philosophical work by John Ralston Saul that explores the importance of balancing key human qualities—such as reason, ethics, and common sense—to create a more humane and democratic society.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Coase theorem Target entity description: The Coase theorem is an economic theory stating that if property rights are well-defined and transaction costs are negligible, private bargaining will lead to an efficient allocation of resources regardless of the initial assignment of rights.
-
A.
The Economics of Welfare
The Economics of Welfare is a foundational 1920 economics treatise by Arthur Cecil Pigou that systematically develops welfare economics and the concept of externalities to analyze the role of government in correcting market failures.
-
B.
Nash bargaining solution
The Nash bargaining solution is a foundational concept in game theory that defines a fair and efficient outcome for two-party bargaining problems based on axioms of rationality and symmetry.
-
C.
Rubinstein bargaining model
The Rubinstein bargaining model is a foundational game-theoretic framework that analyzes how two parties reach agreement over time through alternating offers under the influence of impatience and strategic delay.
-
D.
Pigouvian taxes
Pigouvian taxes are corrective taxes designed to address negative externalities by aligning private costs with social costs, thereby improving overall economic efficiency.
-
E.
On Equilibrium
On Equilibrium is a philosophical work by John Ralston Saul that explores the importance of balancing key human qualities—such as reason, ethics, and common sense—to create a more humane and democratic society.
- F. None of above. chosen
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
economic theorem
ⓘ
theorem in law and economics ⓘ welfare economics concept ⓘ |
| addresses | problem of social cost ⓘ |
| assumption |
no wealth effects on marginal valuations in some formulations
ⓘ
parties are rational ⓘ parties have complete information ⓘ property rights are well-defined ⓘ transaction costs are zero or negligible ⓘ |
| concerns |
allocation of property rights
ⓘ
bargaining over legal entitlements ⓘ externalities ⓘ |
| coreIdea |
efficiency of resource allocation is independent of initial assignment of legal rights under zero transaction costs
ⓘ
with well-defined property rights and zero transaction costs, private bargaining leads to efficient outcomes ⓘ |
| field |
economics
ⓘ
environmental economics ⓘ institutional economics ⓘ law and economics ⓘ welfare economics ⓘ |
| implies |
government intervention is not necessary for efficiency under zero transaction costs
ⓘ
initial allocation of rights affects wealth distribution ⓘ initial allocation of rights does not affect efficiency under ideal conditions ⓘ legal rule affects distribution but not efficiency under zero transaction costs ⓘ parties can internalize externalities through bargaining ⓘ |
| influenced |
environmental policy design
ⓘ
law and economics movement ⓘ property rights economics ⓘ |
| limitation |
coordination problems with many affected parties
ⓘ
enforcement costs of agreements ⓘ information asymmetries can prevent efficient bargaining ⓘ real-world transaction costs are often significant ⓘ strategic behavior in bargaining ⓘ |
| namedAfter | Ronald Coase ⓘ |
| originatedIn |
article "The Problem of Social Cost"
ⓘ
linked to:
The Problem of Social Cost
|
| originatedYear | 1960 ⓘ |
| proposedBy | Ronald Coase ⓘ |
| relatedTo |
First Welfare Theorem
ⓘ
Pigouvian tax ⓘ
linked to:
Pigouvian taxes
Ronald Coase ⓘ The Problem of Social Cost ⓘ bargaining theory ⓘ externality ⓘ property rights theory ⓘ transaction costs ⓘ |
| usedIn |
analysis of bargaining solutions in game theory
ⓘ
analysis of environmental regulation ⓘ analysis of intellectual property disputes ⓘ analysis of nuisance law ⓘ analysis of pollution control ⓘ design of liability rules ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: Coase theorem Description of subject: The Coase theorem is an economic theory stating that if property rights are well-defined and transaction costs are negligible, private bargaining will lead to an efficient allocation of resources regardless of the initial assignment of rights.
Referenced by (11)
Full triples — surface form annotated when it differs from this entity's canonical label.