This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tariff Scarce Theorem Social Optimum Theorem Coase Theorem

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16-02-2017
Social Studies

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This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tariff Scarce Theorem Social Optimum Theorem Coase Theorem

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Greenleafable Greenleafable · Answer 1 · 2017-02-23T11:03:56+01:00

Greenleafable Greenleafable

23-02-2017

This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. = Coase theorem.
Coase theorem proposes that "when there is a disagreement about property rights, those parties concerned can find a way to come to a mutually beneficial outcome by means of bargaining or negotiating terms," according to its definition.

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