When property rights are clearly defined, there is generally a

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When property rights are clearly defined, individuals are able to negotiate and reach voluntary agreements or contracts regarding the use and trade of their respective property. This reduces the likelihood of disputes and conflicts over resource allocation, and promotes efficient resource use. Laws and regulatory agencies may still be necessary to enforce property rights and protect against externalities, but they are not always required when clear property rights exist. The common property problem arises when property rights are not well-defined, leading to overuse and degradation of shared resources.

When Property Rights Are Clearly Defined, There Is Generally a