Better defined property rights are always preferred to less defined ones. The reason why property rights are not perfectly defined:
A)is due to the presence of fairness issues.
B)is the absence of transaction costs.
C)is the result of an optimization process.
D)is that a large share of voters are ideologically opposed to it.

Question

Quizplus · Accepted Answer

Property rights are not perfectly defined due to an optimization process. The level of definition that best balances the benefits and costs of defining property rights is subjective and varies depending on the context. The process of defining property rights involves costs such as legal fees, enforcement, and potential disputes, so the level of definition should be optimized to minimize these costs while maximizing the benefits of having well-defined property rights. Thus, option C is the correct choice.

Better Defined Property Rights Are Always Preferred to Less Defined