SOSC 2330 Lecture Notes - Lecture 4: Externality, Coase Theorem, Ronald Coase
4 Oct 2016
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Document Summary
Felt that liberal was too left wing- libertarian liberty of individual. Neoclassical economic approach new classical from smith & hayek. Utility for each additional unit -, with each new e pair of air max they satisfy less and less. Value is always subjective (determined by the individual) and can be calculated through price. Calculating our desire by price all subjective and objective all rooted in individual. Individual towards market based decisions (utility) rooted in individual. Equilibrium system stability supply is equal to demand for ex. Negative externalities taxation/ regulation/ property rights. Neg ext. affects things from outside a-b business deal aka damaging of environment or damaging of other business. Coase theorem most significant legal economic proposition to gain currency since the early utilitarian"s identified the maximization of individual satisfaction with consumer freedom from conscious state regulation. Resolution of disputes = amoral something in which ethics of morals done have a rule or consideration.
