anonymous
  • anonymous
True or False.The principle that private negotiation can resolve potential externalities without resort to government intervention is known as The Coase Theorem. Please explain
Economics - Financial Markets
schrodinger
  • schrodinger
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anonymous
  • anonymous
This is a good question , its a bit difficult to answer due to the fact that the government or the judicial branch of the govt does use this theorem in different cases.
anonymous
  • anonymous
This is true by the way. The theorem basically says that the two parties are able to solve the ir problem by themselves and are able to solve the problem in a way that provides a win win situation for both parties. But when deciding on how to solve the problem it has to be "Cost less".
anonymous
  • anonymous
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