Question: There are two divorce laws, A and B . Under A , it takes only one person to agree to a divorce and the divorce
There are two divorce laws, A and B Under A it takes only one person to agree to a divorce and the divorce is granted. Under B it takes two persons to agree to a divorce before it is granted. According to Coase,
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there will be the same number of divorces under both laws if transaction costs are zero.
there will be more divorces under law A
there will be more divorces under law B
taxes should be imposed on those parties who seek divorces.
subsidies should be granted to those persons who unwillingly get divorces.
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