Word.ws English Dictionary

Coase theorem

Coase theorem proper noun: a theorem stating that, if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property.

Proper noun

Coase theorem

  1. A theorem stating that, if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property.

Origin of Coase theorem

Introduced by Ronald Coase.

Questions about Coase theorem

What does Coase theorem mean?
Coase theorem means a theorem stating that, if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property.
What part of speech is Coase theorem?
Coase theorem is a proper noun.

Words near Coase theorem in the dictionary

  1. coarticulation
  2. coarticulations
  3. coarticulatory
  4. coas
  5. Coase
  6. Coase theorem
  7. Coasean
  8. Coasian
  9. coassemble
  10. coassembled
  11. coassembles

Source and license

Adapted from Wiktionary: Coase theorem (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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