The Coase theorem applies when property rights are given
A) to the victim of pollution but not to the polluter.
B) to the polluter but not to the victim.
C) to either the polluter or the victim.
D) neither to the polluter nor to the victim.

Question

Quizplus · Accepted Answer

The Coase theorem states that if property rights are well-defined and transaction costs are low, parties can negotiate to reach an efficient outcome regardless of who holds the property rights.

The Coase Theorem Applies When Property Rights Are Given