Tag Archives: tragedy of the commons

A Dose of Coase

Ron Coase, winner of the 1991 Nobel Prize in economics, died yesterday at 102. He was best known for his research into transaction costs and how it influences firm size, and the observation that a lack of property rights increases regulation. He argued that if transaction costs are low and property rights well defined, private agents can achieve optimal outcomes absent regulation, and thus designing such systems should be encouraged.