The proposition that if property rights exist and are enforced,then private transactions are efficient is referred to as the
A) Coase theorem.
B) property rights theorem.
C) pollution rights theorem.
D) emission rights theorem.
E) private-market efficiency theorem.

Question

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The proposition that if property rights exist and are enforced, then private transactions are efficient is known as the Coase theorem, named after economist Ronald Coase. The theorem suggests that in the absence of transaction costs, private bargaining will lead to an efficient allocation of resources, regardless of how property rights are initially assigned.

The Proposition That If Property Rights Exist and Are Enforced,then