What Is the Coase Theorem? What Are Transaction Costs

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Examlex · Accepted Answer

The Answer is The Coase Theorem asserts that if the benefits are greater than the costs for some course of action, there must be potential transactions that can make some people better off without making anyone worse off. For this to result property rights must be well-defined and transaction costs must be low. Transaction costs are the costs of negotiating and executing an exchange, excluding the cost of the good or service bought.​​

What Is the Coase Theorem? What Are Transaction Costs

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