Source: wikibot/coase-theorem
= Coase theorem
{wiki=Coase_theorem}
The Coase theorem, named after economist Ronald Coase, is a concept in economics that addresses the issue of externalities and property rights. It states that, under certain conditions, if property rights are well-defined and transaction costs are low or nonexistent, private parties can negotiate mutually beneficial agreements to resolve externalities on their own, regardless of the initial allocation of property rights.