In episode 12 of the sixth season of The Sopranos,A.J.is watching television with his girlfriend Bianca at her apartment when a group of neighborhood youths begins playing music at a very loud level outside.A.J.approaches the youths and offers them his new mountain bike if they will stop playing the music and leave.The group of youths accepts the mountain bike and leaves.This scene is an example of ________.

Question

Quizplus · Accepted Answer

This scene is an example of the Coase Theorem, which suggests that if property rights are well-defined and transaction costs are low, parties can negotiate to reach an efficient outcome regarding the allocation of resources (in this case, the cessation of loud music in exchange for a mountain bike).

In Episode 12 of the Sixth Season of the Sopranos,A