If property rights are held or shared by a large number of people, and each person has veto power, then private negotiations to solve externalities could break down at the last moment. This problem is called O the holdout problem transaction costs and negotiating problems the free rider problem O the assignment problem
If property rights are held or shared by a large number of people, and each person has veto power, then private negotiations to solve externalities could break down at the last moment. This problem is called O the holdout problem transaction costs and negotiating problems the free rider problem O the assignment problem
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 8QP
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