The Coase theorem implies that an efficient solution is possible only if property rights are well-defined.

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The Coase theorem states that if property rights are well-defined and transaction costs are negligible, then private bargaining will lead to an efficient outcome regardless of the initial allocation of property. Therefore, the theorem implies that an efficient solution is only possible if property rights are well-defined.

The Coase Theorem Implies That an Efficient Solution Is Possible