The Coase theorem suggests that the optimal solution to pollution may be independent of the initial property rights.

Name: The Coase theorem suggests that the optimal solution to pollution may be independent of the initial property rights.
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The Coase theorem suggests that if transaction costs are low and property rights are clearly defined, then the initial assignment of property rights does not matter and parties can negotiate an efficient solution to the problem of pollution.

The Coase Theorem Suggests That the Optimal Solution to Pollution