In one theorem, if trade in this entity is possible and there are no transaction costs, bargaining leads to an efficient outcome regardless of previous allocation; that theorem is named for Coase.
In one theorem, if trade in this entity is possible and there are no transaction costs, bargaining leads to an efficient outcome regardless of previous allocation; that theorem is named for Coase. The positional type of this concept can lead to conspicuous consumption, and, in its presence, social costs and benefits are introduced into the supply-demand diagram. Pigovian taxes and subsidies are often used to minimize or maximize it, which can be caused by either pollution or education. For 10 points, identify this economic concept in which a third party is affected by production or consumption of a commodity.
In one theorem, if trade in this entity is possible and there are no transaction costs, bargaining leads to an efficient outcome regardless of previous allocation; that theorem is named for Coase.
{externalities} or {spillover}