Several criticisms make its application difficult. First, imperfect information will prevent the bargaining for entitlements, resulting in Prisoner's Dilemma-type scenarios. Second, monopolies, such as the railroad company whose sparks set fire to cornfields, will not necessarily behave competitively. Third, some externalities, such as the depletion of the ozone layer, affect too many people to make satisfactory legal transactions practical. Thes
Several criticisms make its application difficult. First, imperfect information will prevent the bargaining for entitlements, resulting in Prisoner's Dilemma-type scenarios. Second, monopolies, such as the railroad company whose sparks set fire to cornfields, will not necessarily behave competitively. Third, some externalities, such as the depletion of the ozone layer, affect too many people to make satisfactory legal transactions practical. These are all problems with, FTP, what theorem that deals with the joint relationship between "polluter" and "victim" and is named for the 1991 Nobel economics laureate?
Several criticisms make its application difficult. First, imperfect information will prevent the bargaining for entitlements, resulting in Prisoner's Dilemma-type scenarios.
{Coase} Theorem