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eBook The firm, the market, and the law download

by R. H Coase

eBook The firm, the market, and the law download ISBN: 0226111008
Author: R. H Coase
Publisher: University of Chicago Press (1988)
Language: English
Pages: 217
ePub: 1433 kb
Fb2: 1433 kb
Rating: 4.8
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Category: Work and Money
Subcategory: Economics

Ronald Coase is a fantastic economist. The Firm was written in the 1930's and has not lost anything over the years. The other two essays, The MArket and The Law are good ancillary material.

Ronald Coase is a fantastic economist.

by. Coase, R. H. (Ronald Harry).

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Электронная книга "The Firm, the Market, and the Law", R. Coase

Электронная книга "The Firm, the Market, and the Law", R. Coase. Эту книгу можно прочитать в Google Play Книгах на компьютере, а также на устройствах Android и iOS. Выделяйте текст, добавляйте закладки и делайте заметки, скачав книгу "The Firm, the Market, and the Law" для чтения в офлайн-режиме.

Coase's particular interest has been that part of economic theory that deals with firms, industries, and markets-what is. .Coase was an excellent writer. All the text contained in this book is lucid and succinct.

Coase's particular interest has been that part of economic theory that deals with firms, industries, and markets-what is known as price Few other economists have been read and cited as often as .

The final essay in The Firm, the Market, and the Law is on the aforementioned subject of lighthouses, which Coase demonstrates that a series of distinguished economists before him had characterized incorrectly from an economic perspective. His question: How is it that these great men have, in their economic writings, been led to make statements about lighthouses which are misleading as to the facts, whose meaning, if thought about in a concrete fashion, is quite unclear, and which, to the extent that they imply a policy conclusion, are very likely wrong?

Ronald Harry Coase (/ˈkoʊs/; 29 December 1910 – 2 September 2013) was a British economist and author

Ronald Harry Coase (/ˈkoʊs/; 29 December 1910 – 2 September 2013) was a British economist and author. He was the Clifton R. Musser Professor of Economics at the University of Chicago Law School, where he arrived in 1964 and remained for the rest of his life. He received the Nobel Memorial Prize in Economic Sciences in 1991.

Within a firm, these markets transactions are eliminated and in place of the .

Within a firm, these markets transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the ator, who directs production. 10. It is clear that these are alternative methods of co-ordinating production. It can, I think, be assumed that the distinguishing mark of the firm is the supersession of the price mechanism. limits to what the persons supplying the commodity or service is expected to do. The details of what the supplier is expected to do is not stated in the contract but is decided later by the purchaser.

Mass Market rdcoverMass Market rdcover. Best book on Coase Theorem and transaction cost. com User, September 24, 1997. Unlike other Nobel Prize winners, Coase's original papers, reprinted in this book, actually are the best sources to explain his own theory. Anyone seeking to understand the "Chicago School" of economics should read this book.

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Comments: (7)
Ronald Coase is a fantastic economist. He writes with great lucidity and a confidence which suggests to the reader that his arguments "fall into the category of truths which can be deemed self-evident" (page 1). Coase's principal aim in these essays is to correct what he believes to be the flaws of mainstream economic theory. In the process of doing so, he asks some remarkably novel and challenging questions, but in the end fails to pursue them consistently, arriving at conclusions which employ the same assumptions by those whom he is trying to refute.

The book consists of seven essays. Very briefly, the first essay is an introduction in which Coase describes his economic outlook while introducing the concepts contained in each of the following essays. The remaining six essays can be divided up as follows. Chapters two and three contain discussions of the firm. The second essay is the highly influential "The Nature of the Firm" essay while the third essay applies these arguments to a general research proposal on industrial organization. Chapter four and seven are essays which can be described as historical. Chapter four summarizes and contributes to the "marginal cost controversy." For those with little exposure to this issue, this essay can be passed over. Chapter seven is the famous "The Lighthouse in Economics" which challenges the public goods argument by showing that the lighthous has historically been provided by private companies. The remaining two chapters contain arguments and notes on what has come to be called "The Coase Theorem." Chapter five is the actual essay "The Problem of Social Cost" and chapter six contains a series of replies to various criticisms that have been directed at the arguments presented in "The Problem of Social Cost" essay.

Clearly, the best aricles in this book are chapters two and five, "The Nature of the Firm" and "The Problem of Social Cost". As I mentioned earlier, Coase begins his analysis by asking a very novel and challenging question: If the price system works itself, as is conventionally taught, then why do we see firms? His answer is that there are costs to conducting transactions through the market. The two examples he gives in various forms are:

1. discovering what the relevant prices are, since outside equilibrium the relevant prices are not known.

2. The costs of negotiating and concluding contracts.

To my disappointment, Coase inexplicably spends the rest of the essay extending the example of the costs of contractual arrangements. Now this is an important problem, but until the question of relevant prices is resolved, the problem of executing costly contracts seems to be almost insuperable because if we still have no way of discovering what the relevant prices are, then how can we measure the degree of costs involved in "negotiating and concluding contracts" (page 38)?

I would have liked to see Coase concentrate his remarkable intellectual abilities on the first problem; namely, that of disovering what the relevant prices are. He mentions this problem just once, and then omits it from all subsequent discussions of costs and market transactions. I cannot make sense of this.

This problem is carried into his other famous essay "The Problem of Social Cost". Now the economic analysis contained in this essay is both rigorous and logically consistent. Given certain prices, and given a world in which transaction costs are absent, it would seem superfluous to assign rights because they would simply be re-negotiated in a way which maximizes the social product. This world is a world of equilibrium, and in such a world we can presume that the relevant prices are known. What I like about this argument is that it demonstrates to the advocates of this model (equilibrium) that economists cannot simultaneously present theories of perfect competition and market failure. In a world of perfect competition, rights will be arranged in a way consistent with the maximization of the social product. It does not make any sense to speak of market failire in conditions of perfect equilibrium. We can use Coase's analysis and say to economists:

"The nature of the choice is clear: [perfect competition] or [market failure]. What answer should be given is, of course, not clear unless we know the value of what is obtained as well as teh value of what is sacrificed to obtain it" (page 96).

But when Coase does admit the existence of transaction costs into the analysis, he falls into the same error of assuming that the relevant prices are still known in such a world. He writes:

"In earlier sections, when dealing with the problem of the rearrangement of legal rights through the market, I argued that such a rearrangement would be made through the market whenever this would lead to an increase in the value of production. But this assumed costless market transactions. Once the costs of carrying out market transactions are taken into account, it is clear that such a rearrangement of rights will only be undertaken when the increase in the value of production consequent upon the rearrangement is greater than the costs which would be involved in bringing it about" (page 115).

This argument, while laudable in its emphasis on transaction costs, still begs the question. We first must know what the relevant prices are before we can compare the relative advantages of alternative sets of rights. I think Coase's argument would be strengthened considerably once these considerations are brought into clearer light. To my knowledge, this observation has yet to be made. Before we can speak of transaction "costs", it behooves us to know, as Coase recognized, what the relevant prices are. We could not speak of cost without first solving this very important problem.
Why do firms exist? Why are there companies instead of cottage industries? Why should the government encourage or support the formation of firms and inforce laws that assist the firm as if it had rights? Dig down into things and you discover that it is the minimization of transaction costs that drives the formation and growth of firms and that when people lose sight of that truth, things can get dicey. This book is for someone with a decent grasp of economics. Not for the faint of heart. The Firm was written in the 1930's and has not lost anything over the years. The other two essays, The MArket and The Law are good ancillary material.
Hawk Flying
This little book is a fantastic introduction to some of the powerful ideas introduced by Coase. Coase initiated two different ideas that today govern or inform much of the work of economists. The first was his introduction of the idea of "transaction costs", from an article suggesting an investigation into the root causes for industrial organization. The second is now known as the Coase Theorem, and stems from his insightful refutation of the Pigouvian view of social cost. There is also an article investigating the actual history of lighthouses in England, something which has usually been cited as a pure public good, and therefore requiring government provision. The history shows that most lighthouses - in some periods, all lighthouses - were privately provided. Coase's writing is lucid, his ideas profound, and his influence widespread. This collection is very important to anyone wanting to understand externalities, transaction costs, and social welfare.
This collection of seven of economist Ronald Coase's essays provides important understanding of the workings of market economies, the boundary between private and public, and what determines the size and structure of a firm. Coase distinguished his work from other economists by focusing on the role of transaction costs-now a common theme in discussions of the new economy. If you read only one of the chapters, it should be "The Nature of the Firm". Here Coase provides the intellectual foundations for strategic thinking about business architectures, mergers and acquisitions, outsourcing, and collaborative commerce. Some of this work was later elaborated on by Oliver Williamson (see his 1985 book, The Economic Institutions of Capitalism.) Like Joseph Schumpeter, Ronald Coase is an economist whose works from decades ago are now more relevant than ever. While Schumpeter's phrase "creative destruction" may be more memorable, in the end it is Coase's views on transaction costs and the nature of the firm that may be the more significant (and certainly more readable).
Definitely the best book in economics since Adam Smith's Wealth of Nations. I believe the future of economics will be more promising if we would be more willingly to adopt the Smith/Coase framework to re-organize our thoughts than to be continuously stuck in the world without transaction costs, such as that in Walrasian perfect competition or in Chamberlinian monopolistic competition. Smith never proposed perfect competition. He did recognize the significance of the cost of using markets (see Wealth of Nations, Book I, Chapter VII). The Firm, the Market, and the Law, therefore, deepens the arguments of Smith, and makes clearer the interactions among the three most important institutions in human society: firm, market, and law. Any person who is interested in economics should read this book, and if this has been done before, then read it again!
I have read a majority of the papers presented in this book. I enjoy the writing. It is not necessarily as clear as it could be but it is cogent. Coase is on point and is prescient in his solutions to various economic problems.
good concept, just not much of a writer. Use in lieu of sleeping pill.