True or false : say that transaction costs are high because there are many parti

Question

True or false : say that transaction costs are high because there are many parties to a property use dispute. If the externality is caused by say a paper firm polluting a river by placing dioxin in the river, then the Coasian analysis of property rights disputes implies that the most efficient solution will be to place liability on the paper firm since it is the party chasing the externality. True or false : say that transaction costs are high because there are many parties to a property use dispute. If the externality is caused by say a paper firm polluting a river by placing dioxin in the river, then the Coasian analysis of property rights disputes implies that the most efficient solution will be to place liability on the paper firm since it is the party chasing the externality.

Explanation / Answer

Correct Answer:

False

Explanation:

In the presence of high transaction cost, Coasian analysis says that efficient solution depends upon the owner of initial property right. Accordingly, cost / price of externality is placed on polluter.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.