Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark.

The Coase theorem depends on a number of assumptions, among others, perfect information about each other's payoff function, maximising behaviour and zero transaction costs. An important question is whether the Coase theorem holds for real market transactions when these assumptions are violated. This is the question examined in this paper.

Scenario realism and welfare estimates in choice experiments--a non-market valuation study on the European water framework directive.

Using choice experiment data for economic valuation we analyse how disbelief in survey information could affect the retrieved welfare estimates. We distinguish between two types of survey information to the respondents. The first type of information concerns the current environmental status of a water body.