44. Externalities and The Coase Theorem

In this video, I provide simple numerical examples to illustrate the spirit of the Coase Theorem at a very basic level. As the idea of the Coase Theorem is subtle, exploring it with simple examples can be useful in understanding the general idea. The lecture builds on material in my book Intromediate Microeconomics (available at http://www.lulu.com/cookson), which has a more exhaustive treatment of this material. This video is part of my series of microeconomics tutorials. For a list of videos and links to these videos (organized by topic), check out the Intromediate Microeconomics video web page: http://blog.thisyoungeconomist.com/p/...