The Coase Theorem, proposed by economist Ronald Coase, is a theory in economics that suggests that under certain conditions, individuals or businesses can negotiate and reach efficient outcomes without government intervention, regardless of the initial allocation of property rights. It asserts that as long as transaction costs are low and property rights are well-defined, private bargaining can lead to the optimal allocation of resources.
When negotiation trumps regulation 🌐⚖️ Coase
Theorem shows how clear property rights can lead to efficient outcomes.
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