Assume that your housemate is very messy.(There is no law against being messy.) Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you.The Coase theorem would suggest that an efficient solution would be for you to:

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The Coase theorem suggests that if transaction costs are negligible, parties can negotiate to an efficient solution regarding the allocation of resources, regardless of the initial distribution of property rights. In this scenario, paying your housemate at least $100 but no more than $200 to clean up after herself would compensate her for the loss of her benefit from being messy, while also being less than the cost imposed on you, leading to an efficient outcome.

Assume That Your Housemate Is Very Messy