Coase theorem

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Notion

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Science and technology

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What Wikipedia says

The Coase theorem () postulates the economic efficiency of an economic allocation or outcome in the presence of externalities. The theorem is significant because, if true, it would be possible for private individuals to make choices that can solve the problem of market externalities.

Excerpt from the Wikipedia article “Coase theorem”, under the CC BY-SA 4.0 license. Read the article on Wikipedia