New answers tagged social-welfare
4
Yes you're correct.
Stigler's "Coase Theorem" merely asserts that if transaction costs are zero, then the initial allocation of rights will not affect the total size of the economic pie, but may affect the distribution of the pie.
Two examples:
Example 1. Profit > Damage.
A producer $X$ producing widgets earns \$3 in profits but causes \$1 of ...
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