According to the Coase theorem part I, no fault divorce should have:
A)not changes the divorce rate but made women better off.
B)not changed the divorce rate, and not made anyone better or worse off.
C)changed the divorce rate, but made men better off.
D)not changed the divorce rate, but made women worse off.

Question

Quizplus · Accepted Answer

The Coase theorem suggests that if property rights are clearly defined and transaction costs are negligible, the allocation of resources will be efficient regardless of who holds the rights. In the context of no-fault divorce, this implies that the introduction of such laws should not inherently change the divorce rate or make any party better or worse off, assuming parties can negotiate and reallocate resources efficiently. The changes observed in real life, such as changes in divorce rates or impacts on men and women, would stem from factors outside the Coase theorem's assumptions, such as transaction costs, information asymmetries, or changes in bargaining power.

According to the Coase Theorem Part I, No Fault Divorce