Virtual Corporation. Cendant Corporation provides travel and real estate services primarily in the United States and the United Kingdom. It operates in six segments: Real Estate Franchise and Operations, Hospitality Services, Travel Distribution Services, Vehicle Services, Mortgage Services, and Marketing Services. The Real Estate Franchise and Operations segment franchises the real estate brokerage businesses, provides real estate brokerage services, and assists in employee relocations through Cendant Mobility. Cendants's Hospitality Services segment operates eight lodging franchise systems; facilitates the sale, exchange, and development of time-share vacation ownership interests; and markets and manages vacation rental properties. The Travel Distribution Services segment provides travel content and services to consumers, travel agencies, corporations, and suppliers of travel products and services. The Vehicle Services segment operates and franchises its Avis and Budget vehicle rental businesses. Mortgage Services provides home buyers with mortgage lending services and title, appraisal, and closing services. And finally, the Marketing Services segment provides membership, loyalty, and insurance-based products and services to financial institutions and other partners.
A. What is the Coase Theorem?
B. Use the Coase Theorem to explain Cendant's recent operating and stock-market success.

Question

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The Answer of Virtual Corporation. Cendant Corporation provides travel and real estate services primarily in the United States and the United Kingdom. It operates in six segments: Real Estate Franchise and Operations, Hospitality Services, Travel Distribution Services, Vehicle Services, Mortgage Services, and Marketing Services. The Real Estate Franchise and Operations segment franchises the real estate brokerage businesses, provides real estate brokerage services, and assists in employee relocations through Cendant Mobility. Cendants's Hospitality Services segment operates eight lodging franchise systems; facilitates the sale, exchange, and development of time-share vacation ownership interests; and markets and manages vacation rental properties. The Travel Distribution Services segment provides travel content and services to consumers, travel agencies, corporations, and suppliers of travel products and services. The Vehicle Services segment operates and franchises its Avis and Budget vehicle rental businesses. Mortgage Services provides home buyers with mortgage lending services and title, appraisal, and closing services. And finally, the Marketing Services segment provides membership, loyalty, and insurance-based products and services to financial institutions and other partners.
A. What is the Coase Theorem?
B. Use the Coase Theorem to explain Cendant's recent operating and stock-market success.