Examlex
All else equal, the value of an option increases with an increase in the variance of returns in the underlying asset.
Private Bargaining
The process through which individual parties negotiate terms and conditions exclusively among themselves without the intervention of external regulations.
Efficient Outcome
An optimal allocation of resources that results in the highest possible satisfaction or utility with the least waste or inefficiency.
Externality
A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices.
Property Rights
Legal rights to use, control, and benefit from a resource.
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