Coase theorem: With zero transaction costs, parties negotiate efficient outcomes
Image: TomasEE, CC BY 3.0, via Wikimedia Commons
Coase theorem
Coase theorem: With zero transaction costs, parties negotiate efficient outcomes
Related concepts
Quantity theory of money
MV = PY equation
Efficient-market hypothesis
Prices reflect all available information
Labor theory of value
Value = Labor required for production
the Modigliani-Miller theorem says
Modigliani-Miller theorem: In perfect markets, capital structure doesn't affect firm value
Laissez-faire
Laissez-faire economics advocates minimal government intervention in markets
Supply and demand
Market-clearing price where quantity supplied equals quantity demanded
Educational content, not financial advice.
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