I’m trying to study for my Economics course and I need some help to understand this question.
Assignment 2: Coase Theorem
For our purposes, assume we can define the Coase Theorem as “if property rights are well defined, and there are not significant transaction costs, an efficient allocation of resources will occur, even if externalities exist.”
Page 57 in Harris begins a discussion of the Coase Theorem. A description and example applications are shown. Your assignment is to make up your own hypothetical scenario for the application of the Coase Theorem. Describe your scenario (in your own words) and create a distribution of benefits table under different rights. Your results should look something like Table 3.3 (page 59) in Harris.
Submit your scenario description and be sure it includes your table. Up-load your paper as pdf or MSWord file. Include your name in the file name.