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Coase Theorem
Suggests that if property rights are clearly defined and transaction costs are low, parties will negotiate to solve externalities on their own.
Externalities
Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failures.
Private Sector
The part of the economy that is run by individuals and companies for profit and is not state controlled.
Transaction Costs
Transaction costs are the expenses incurred in buying or selling goods or services, which can include search and information costs, bargaining costs, and enforcement costs.
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