The Coase solution to the externality problem works only when bargaining costs are high.

Name: The Coase solution to the externality problem works only when bargaining costs are high.
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The Coase solution works when bargaining costs are low, as it assumes that the parties involved can negotiate and come to an efficient outcome without incurring excessive transaction costs. If bargaining costs are high, other solutions, such as government intervention or market-based mechanisms, may be more appropriate.

The Coase Solution to the Externality Problem Works Only When