Chicago Best Ideas: Levmore on Coase’s Second Problem

Chicago’s most famous idea is the Coase Theorem. It is well known that the usual implication depends on low transaction costs. But there is a second problem. What if there is a collective action problem in the way? For example, when should you let someone cut in front of you in a long line? In this CBI, Professor Levmore will introduce all this and along the way connect Coase to climate change.

This Chicago’s Best Idea was presented on October 24, 2024.