It has been heavily criticized by David Friedman and James Meade, who claim that market transaction costs are usually too high for it to be accurate.
Guido Calabresi wrote a book stating that this idea can run into problems due to problems due to power imbalance between the parties involved, The Cost of Accidents, and in the work it is initially posited in, courts are required because of the failure of its main assumption to hold. It has been heavily criticized by David Friedman and James Meade, who claim that market transaction costs are usually too high for it to be accurate. This idea was posited with the example of a court case involving a doctor and his neighboring confectioner's nuisance, in "The Problem of Social Cost." Bargaining will lead to an efficient outcome regardless of the initial allocation of property rights if transaction costs are low in, for 10 points, this theorem that deals with the consequences of externalities, named for the winner of the 1991 Nobel Prize in Economics?
Guido Calabresi wrote a book stating that this idea can run into problems due to problems due to power imbalance between the parties involved, The Cost of Accidents, and in the work it is initially posited in, courts are required because of the failure of its main assumption to hold.
{Coase} theorem [or {Coase's} theorem]