Asked by Brooklyn Roller on Jul 28, 2024
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Ronald Coase argued that property rights should never be assigned to the party that is generating a negative externality.
Property Rights
Legal rights to possess, use, and dispose of assets including tangible and intangible property.
Negative Externality
A cost that affects a third party who did not choose to incur that cost, often associated with pollution or public health issues.
Ronald Coase
A British economist known for his work on transaction costs, property rights, and the theory of the firm.
- Understand the Coase theorem and its implications for private solutions to externality problems.
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Learning Objectives
- Understand the Coase theorem and its implications for private solutions to externality problems.
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