Journal of Libertarian Studies

Coase and Demsetz on Private Property Rights

The Journal of Libertarian Studies

In his seminal work, “The Problem of Social Cost,” Coase held that in cases of private property right disputes involving what have been called externalities, “with costless market transactions, the decision of the courts concerning liability for damage would be without effect on the allocation of resources.” I shall try to show that this view is mistaken because it does not take account of psychic income. I shall then consider what can only be considered immoral implications Demsetz draws from Coase’s view of property.

Volume 1, Number 2 (1977)


Block, Walter. “Coase and Demsetz on Private Property Rights.” Journal of Libertarian Studies 1, No.2 (1977): 111-115

All Rights Reserved ©
What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. 

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member
Mises Institute