Add to Favourites
To login click here
The Coase theorem is a law and economics concept that states that if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome. This theorem, attributed to Nobel Prize laureate Ronald Coase, suggests that externalities such as pollution and smog can be addressed through bargaining with those who produce them, provided there are no barriers or costs to doing so.
