One condition for individual bargaining to occur according to the Coase Theorem is that there must be:
A)clearly defined property rights.
B)many people affected and involved.
C)government intervention to establish bargaining.
D)government creation of a market for externalities.

Question

Quizplus · Accepted Answer

The Coase Theorem states that if property rights are clearly defined and transaction costs are low, individuals can bargain and reach an efficient outcome regardless of the initial allocation of property rights. Therefore, clearly defined property rights are necessary for individual bargaining to occur according to the Coase Theorem.

One Condition for Individual Bargaining to Occur According to the Coase