Author Question: Which of the following are qualifications of the Coase Theorem? a. technical transaction costs must ... (Read 16 times)

neverstopbelieb · **on:** Jul 1, 2018

Which of the following are qualifications of the Coase Theorem?
a. technical transaction costs must remain low and be unaffected if liability assignment is reversed
b. both parties must operate in a purely competitive market
c. one party quickly makes an offer the other is just willing to accept only when the information regarding payoffs is complete, certain and known to both parties
d. all of the above are correct
e. only a and c

Question 2

In common value auctions
a. Every bidder know the value of the object being sold
b. Each bidder makes the same estimate of the value of the good
c. All bidders know the estimates of the others
d. The true value of the item is common across bidders