The Coase conjecture argues that a monopoly provider of a durable good will retain monopoly power and sell the good at the monopoly price.

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The Coase conjecture actually argues that in the absence of transaction costs and with well-defined property rights, any allocation of resources, including the price and quantity of a good sold by a monopoly, will be efficient and independent of the initial allocation of property rights. Therefore, a monopoly provider of a durable good may not necessarily retain monopoly power and sell the good at the monopoly price.

The Coase Conjecture Argues That a Monopoly Provider of a Durable