Ronald Coase argued that property rights should never be assigned to the party that is generating a negative externality.

Name: Ronald Coase argued that property rights should never be assigned to the party that is generating a negative externality.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

Ronald Coase argued that in the presence of externalities, assigning property rights (regardless of to whom) can lead to an efficient outcome through negotiation, as long as transaction costs are low. This is known as the Coase Theorem.

Ronald Coase Argued That Property Rights Should Never Be Assigned