Coasean Toilets

Not doing anything to dispel the ridiculous notion that we at tutor2u have a bizarre toilet fetish, I thought that I’d write a quick note about something I saw last week. Coming out of Embankment tube station (on the left hand side towards the riverbank for those who would like a visit), I was curious to discover a sign next to a bar reading “Public toilets 100 feet” with an arrow pointing up ahead. So being the economist that I am, I figured it would be a good time to conduct my own little scientific experiment. I walked 100 feet and there was indeed a public toilet, free and surprisingly well-kept (maybe this will contribute to that previous discussion). But what I found most interesting of all was the how the bar took their own initiative to put up a helpful sign directing bursting passers-by, and how it’s a marvellous example of the Coase theorem in action.