When it comes to pollution problems, the polluter and the victim can bargain to arrive at an outcome that benefits both parties.

Question

Quizplus · Accepted Answer

This concept is based on the Coase Theorem, which suggests that if property rights are well-defined and transaction costs are low, the allocation of resources will be efficient regardless of who holds the property rights. Thus, the polluter and the victim can negotiate a mutually beneficial agreement to address the pollution.

When It Comes to Pollution Problems, the Polluter and the Victim