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Author Question: What do you believe is one of the chief criticisms of the Coase Theorem that render it useless in ... (Read 62 times)

DelorasTo

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on: Jun 29, 2018
What do you believe is one of the chief criticisms of the Coase Theorem that render it useless in real-world situations.
 
  What will be an ideal response?

Question 2

What is the Coase theorem?
 
  What will be an ideal response?


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rleezy04

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A key criticism is that the theorem is almost always inapplicable in economic reality, because real-world transaction costs are rarely low enough to allow for efficient bargaining.

Answer to Question 2

The Coase theorem says that, under certain conditions when externalities are present, private parties can arrive at the efficient solution without government involvement.


DelorasTo

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

jomama

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Reply 3 on: Yesterday
Excellent

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