《light in economics》.pdf

The Lighthouse in Economics Author(s): R. H. Coase Source: Journal of Law and Economics, Vol. 17, No. 2 (Oct., 1974), pp. 357-376 Published by: The University of Chicago Press Stable URL: /stable/724895 Accessed: 08/11/2008 20:48 Your use of the JSTOR archive indicates your acceptance of JSTORs Terms and Conditions of Use, available at /page/info/about/policies/terms.jsp. JSTORs Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at /action/showPublisher?publisherCode=ucpress. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact support@. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to Journal of Law and Economics. THE LIGHTHOUSEIN ECONOMICS* R. H. COASE of Law School University Chicago I. INTRODUCTION T HElighthouse appears in the writings of economists because of the light it is supposed to throw on the question of the economic functions of government. It is often used as an example of