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The Coase theorem is very powerful for debunking excuses, and for recognizing the enormous opportunities available to all regardless of wealth
<center>''The Coase theorem is very powerful for debunking excuses, and for recognizing the enormous opportunities available to all regardless of wealth''.</center>
The '''Coase theorem''' states that if property rights are well-defined and [[transaction costs]] (including costs of negotiating) are zero or negligible, then the most efficient or [[Pareto optimal]] economic activity will occur regardless of who initially owns the property rights. Negotiation and market transactions will ensure optimal allocation of property.
The '''Coase theorem''' states that if property rights are well-defined and [[transaction costs]] (including costs of negotiating) are zero or negligible, then the most efficient or [[Pareto optimal]] economic activity will occur regardless of who initially owns the property rights. Negotiation and market transactions will ensure optimal allocation of property.