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45. The Coase Theorem in The Edgeworth Box

In this video, I demonstrate what The Coase Theorem means in the context of an endowment economy. The discussion clarifies what the Coase Theorem can and cannot say with respect to the amount of the externality good that is consumed in equilibrium. This video is part of my series of videos on microeconomics (links available at the video series website): http://sites.google.com/site/intromediateecon/ This video series both complements and supplements my textbook, "Intromediate Microeconomics," which is available for purchase at http://www.lulu.com/cookson ($18 for an E-bundle with solutions).
Length: 09:52

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