The proposition that, if bargaining costs are low enough, the private market can achieve an efficient outcome, regardless of which of the affected parties hold the property rights, is known as the:

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The proposition described is the Coase theorem, named after economist Ronald Coase. The theorem states that if transaction costs are low enough and property rights are clearly defined, parties will negotiate and trade with each other in order to reach an efficient outcome, regardless of initial property rights.

The Proposition That, If Bargaining Costs Are Low Enough, the Private