The Coase Solution to the Externality Problem Only Works When

question 37

True/False

The Coase solution to the externality problem only works when bargaining costs are high.

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Definitions:

Bentham's Quantitative Model

A philosophical model proposed by Jeremy Bentham, emphasizing the calculation of pleasure and pain to determine the moral rightness of actions based on their utility.

Utility Principle

A principle in ethics and economics that suggests the best action is the one that maximizes utility, often defined as maximizing happiness and minimizing suffering.

Sadistic Dictator

A ruler who derives pleasure from inflicting suffering on others, often exercising power in a cruel or brutal manner.

Kant

A German philosopher who profoundly influenced modern philosophy with his works on epistemology, ethics, and aesthetics, known for his critique of pure reason.