Patrick W. Schmitz
European Journal of Law and Economics, Vol. 11 (1), 2001, 23-28.
Abstract. Using a simple bilateral trading example with discrete valuations and costs it is demonstrated that in the presence of private information the efficiency of Coasean bargaining may be strictly enhanced if initially no property rights are assigned.
The working paper version is available for download at SSRN.
The paper is available for download.