Christoph Engel Can We Distribute Goods Efficiently Without Property Rights?
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Even in the absence of absolute property rights, ex-post bargaining may lead to efficient distribution of goods, CHRISTOPH ENGEL explains in this video. The findings of this research thus extend the domain of the Coase theorem. In the experiment, with a society of two individuals and a single commodity, a good ends up with the individual who values it most even if only relative property rights – i.e., rights only against other parties to a contract – are provided.
LT Video Publication DOI: http://dx.doi.org/10.21036/LTPUB10057
Bargaining in the Absence of Property Rights An Experiment
- Oren Bar-Gill and Christoph Engel