This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tariff Scarce Theorem Social Optimum Theorem Coase Theorem

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Social Studies

Rodrigo Henson

14 August, 01:49

This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tariff Scarce Theorem Social Optimum Theorem Coase Theorem

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Graves · Answer 1

This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. = Coase theorem.

Coase theorem proposes that " when there is a disagreement about property rights, those parties concerned can find a way to come to a mutually beneficial outcome by means of bargaining or negotiating terms," according to its definition.