What are the fundamentals of Coasian ...

[joblessjake]

What are the fundamentals of Coasian reasoning?

Question 2

According to the text, success requires:
 A) there is no secret formula that guarantees success.
  B) a visionary leader.
  C) a focus on quality.
  D) a customer-orientation.
  E) an emphasis on efficiency.

[jojobee318]

Answer to Question 1

According to the Coasian reasoning, no matter what the initial distribution of the rights, if negotiation is costless, the parties entering into a contract will arrive at an economically efficient outcome which maximizes their net benefits as a group. Coasian reasoning is only about efficiency and does not directly consider how costs and benefits are distributed among the parties.

Answer to Question 2

A