In which cases are the Coase theorems assumptions likely to be true In other words, when will the parties be likely to strike an efficient bargain How do you know a My neighbor wants me to cut down an ugly shrub in my front yard The ugly shrub, of course, imposes an external cost on him and on his property value b My neighbors all would love for me to get that broken down Willies Jeep off my front lawn Its been years now, after all And would it be too much for me to paint the house and fill up that 6 foot deep ditch in the front yard The whole neighborhood is just annoyed c A coal fired electricity plant dumps its leftover hot water into the nearby lake, killing the naturally occurring fish Thousands of homes line the banks of the lake d A coal fired electricity plant dumps its leftover hot water into the nearby river, killing the naturally occurring fish downstream There is one large fishery one mile downstream affected by this After that, the water cools enough so its not a problem

Question

In which cases are the Coase theorems assumptions likely to be true  In other words, when will the parties be likely to strike an efficient bargain  How do you know  a  My neighbor wants me to cut down an ugly shrub in my front yard  The ugly shrub, of course, imposes an external cost on him and on his property value  b  My neighbors all would love for me to get that broken down Willies Jeep off my front lawn  Its been years now, after all  And would it be too much for me to paint the house and fill up that 6 foot deep ditch in the front yard  The whole neighborhood is just annoyed  c  A coal fired electricity plant dumps its leftover hot water into the nearby lake, killing the naturally occurring fish  Thousands of homes line the banks of the lake  d  A coal fired electricity plant dumps its leftover hot water into the nearby river, killing the naturally occurring fish downstream  There is one large fishery one mile downstream affected by this  After that, the water cools enough so its not a problem

SolutionInn · Accepted Answer

In all cases its a simple question of whether you need to negotiate with one part...

Question: In which cases are the Coase theorems assumptions likely to be true? In other words, when will the parties be likely to strike an efficient

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