Externalities and the Coase Theorem: A Diagrammatic Presentation


Publication: Journal of Economic Education

Volume: Volume 36, No. 4

Issue: Fall 2005

Pages: 385-390

Author(s): James Halteman (Wheaton College)  

Address (Principal Author):

James Halteman
Professor of Economics

Wheaton College

501 College Avenue

Wheaton, IL  60187

Phone: 630-752-5312

Fax: 630-752-7037

Internet Address (Principal Author): James.Halteman@wheaton.edu

Title: Externalities and the Coase Theorem: A Diagrammatic Presentation

Abstract: Coase Theorem is presented with costs and benefits on a continuum where costs vary with the degree of intensity of the externality.  This presentation is designed to be introduced at the point of the intermediate microeconomics course where qualifications are put on the perfect competition model.


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