Which of the following is true of the Coase theorem?
A)parties will always reach an optimal bargaining outcome
B)the bargain outcome will be inefficient
C)interested parties will need an arbitrator in order to reach an agreement that is efficient
D)none of the options is true

Question

Quizplus · Accepted Answer

The Coase theorem suggests that under certain conditions (such as clearly defined property rights and low transaction costs), parties can negotiate solutions to conflicts over resource allocation that are efficient without needing an arbitrator, contradicting options A, B, and C.

Which of the Following Is True of the Coase Theorem