A well known result in the economic theory (Coase 1960) states that, when exclusive property rights are settled, and transaction costs (i. e. the costs related to the negotiation and enforcement of contracts and property rights) are equal to zero, then the market — market of rights, not only of goods — is always able to internalise all the costs, obtaining socially efficient outcomes. As it often happens, the most interesting implication of this finding is represented by its negative complement. In other words, it suggests considering what happens when transaction costs are not equal to zero. In this case, in fact, property rights have to be optimally designed and — if necessary — enforced by means of an authority or a public choice mecha nism, as they cannot be optimally transferred through costly market ex changes. Optimal designing of economic institutions and, in particular, of property rights are therefore a crucial task in the context of real economies, where transaction costs are effective.

Ethics, Corporate Culture and Economic Modelling / L. Sacconi - In: Contemporary Economic Ethics and Business Ethics / [a cura di] P. Koslowski. - Berlin : Springer, 2000. - ISBN 9783642085918. - pp. 80-114 [10.1007/978-3-662-04072-0_5]

Ethics, Corporate Culture and Economic Modelling

L. Sacconi
2000

Abstract

A well known result in the economic theory (Coase 1960) states that, when exclusive property rights are settled, and transaction costs (i. e. the costs related to the negotiation and enforcement of contracts and property rights) are equal to zero, then the market — market of rights, not only of goods — is always able to internalise all the costs, obtaining socially efficient outcomes. As it often happens, the most interesting implication of this finding is represented by its negative complement. In other words, it suggests considering what happens when transaction costs are not equal to zero. In this case, in fact, property rights have to be optimally designed and — if necessary — enforced by means of an authority or a public choice mecha nism, as they cannot be optimally transferred through costly market ex changes. Optimal designing of economic institutions and, in particular, of property rights are therefore a crucial task in the context of real economies, where transaction costs are effective.
Business Ethic; Social Contract; Ethical Code; Corporate Culture; Specific Investment
Settore SPS/01 - Filosofia Politica
Book Part (author)
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2434/598477
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact