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hi and welcome to academic compliance Academy of Law and economics this video Im going to talk about the coast theorem now the normative version so remember Coast did not formulate the theorem himself we have different formulations we have different terminologies depending on which author has derived what deduced what from his 1960 paper in this video Im going to use the terminology used by cooldown or lean and idenstevang and before we go to the normative version lets look at the two other version the strict cos theorem with serial transaction cost the COS theorem where we have transaction cost and then we will look to the normative version so first without any transaction cost we have two formulations here so when transaction costs are serial and efficient use of resources will result from private bargaining regardless of the legal assignment of property rights version one version two one property rights are well-defined and transaction across the zero private parties will bargai
