Coase Theorem
The Coase theorem says that if property rights are clear and bargaining is costless, parties will bargain to an efficient outcome regardless of who holds the initial right — the assignment affects distribution, not efficiency.
Definition
Coase Theorem refers to the assignment affects distribution, not efficiency. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When the assignment affects distribution, not efficiency shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what coase theorem is saying. If the assignment affects distribution, not efficiency moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Coase Theorem: what would falsify the current reading in the next window?
Ask the macro AI about this object
Opens Copilot with Codex + RAG context, or send the object into Alpha Factory intake.