Factors that prevent the Coase Theorem from working include all of the following, except :

Question

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The Coase Theorem operates under the assumption of well-defined private property rights, which are necessary for parties to negotiate and reach an agreement on the allocation of resources or the resolution of externalities. The other options (B: transaction costs, C: income effects, D: more than two individuals affected) are factors that can prevent the Coase Theorem from working effectively by complicating negotiations or making them costly.

Factors That Prevent the Coase Theorem from Working Include All