English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Paper

Bargaining in the Absence of Property Rights: An Experiment

MPS-Authors
/persons/resource/persons183106

Engel,  Christoph
Max Planck Institute for Research on Collective Goods, Max Planck Society;

Fulltext (public)
There are no public fulltexts available
Supplementary Material (public)
There is no public supplementary material available
Citation

Bar-Gill, O., & Engel, C. (2015). Bargaining in the Absence of Property Rights: An Experiment.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0029-2463-1
Abstract
The Coase theorem posits: If [1] property rights are perfect, [2] contracts are enforceable, [3] preferences are common knowledge, and [4] transaction costs are zero, then the initial allocation of property rights only matters for distribution, not for efficiency. In this paper we claim that condition [1] can be dropped and show experimentally that this is also empirically true. This also holds when we frame taking as “stealing”, and when the initial possessor has to work for the good.