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Why Might Bargaining Break Down When Parties Negotiate to Remedy

question 53

Essay

Why might bargaining break down when parties negotiate to remedy a market failure and its associated externality?


Definitions:

Unstable

Lacking in stability, predictability, or consistency, often leading to unpredicted changes or outcomes.

Specific Factors

Elements or conditions that are distinct and contribute to a particular outcome or situation.

Prototype

The object that has the greatest number of attributes characteristic of the concept and that is therefore the most typical member of that concept.

Attribute

A feature of an object or event that varies from one instance to another.

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