The proposition that,if transaction costs are low enough and property rights are well-defined,the private market can achieve an efficient outcome,regardless of which of the affected parties hold the property rights,is known as the:
A)Coase theorem.
B)property rights paradigm.
C)market rights theorem.
D)green environment paradigm.

Question

Quizplus · Accepted Answer

The proposition described in the question is known as the Coase theorem, named after economist Ronald Coase. The Coase theorem states that as long as property rights are clearly defined and transaction costs are low, an efficient outcome can be achieved through private bargaining, regardless of who holds the initial property rights.

The Proposition That,if Transaction Costs Are Low Enough and Property