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Carlie Kelley
on Oct 09, 2024

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(Consider This)The principle that private negotiation can resolve potential externalities without resort to government intervention is known as the Coase theorem.

Coase Theorem

A principle that if property rights are clearly defined and transaction costs are low, private bargains will ensure that the market always reaches an efficient outcome regardless of who holds the initial property rights.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.

  • Explore how private negotiation and regulatory frameworks can address or mitigate externalities.
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Hannah MirhashemiOct 15, 2024
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