Coase Theorem and the Core of the Coasian Theory——On Reading "The Problem of Social Cost"

so-called Theorem,as is discussed in the present paper,refers only to Coase's First Theorem,namely If the trading cost is zero,then no matter how the initial right is defined,the maximum output value can be realized through trade on the market. On the basis of a brief review of The Problem of Social Cost,the author points out that Theorem is a method of analysis developed by Coase when dealing with the issue of external infraction,but this train of thought has certain revelation reference value in analyzing and resolving problems which arise in the construction of socialist market economy in China.