One condition for individual bargaining to occur,according to the Coase theorem,is that there must be:
A) clearly defined property rights.
B) many people affected and involved.
C) government intervention to establish bargaining.
D) government creation of a market for externalities.

Question

Quizplus · Accepted Answer

The Coase theorem states that with clearly defined property rights, individuals can bargain and allocate resources efficiently on their own without the need for government intervention. Therefore, the presence of clearly defined property rights is a necessary condition for individual bargaining to occur according to the Coase theorem. The other choices are not necessary conditions for individual bargaining according to the Coase theorem.

One Condition for Individual Bargaining to Occur,according to the Coase