According to the Coase theorem, parties will bargain among themselves to reach an efficient solution without intervention.

Name: According to the Coase theorem, parties will bargain among themselves to reach an efficient solution without intervention.
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The Coase theorem states that if property rights are well-defined and transaction costs are low, parties involved in an externality problem will negotiate and come to an efficient agreement on their own, without the need for government intervention.

According to the Coase Theorem, Parties Will Bargain Among Themselves