Coase theorem

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Ronald Coase

Coase theorem, was thought of by Ronald Coase, it describes how it is believed the environment could be improved by ownership of such things as the right to be compensated for suffering pollution. Like many aspects of Economics that look good in theory this can fail in practise. More people would be tempted to move into polluted areas so they can enjoy compensation. [1]


  1. What is the Coase Theorem, really?

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