Microeconomics
Microeconomics
Consider two types of divorce laws. Law A allows either the husband or the wife to obtain a divorce without the other person’s consent. Law B permits a divorce only if both parties agree to it. Will there be more divorces under law A or law B, or will there be the same number of divorces under both laws? Why?
Identify whether law A or B contains more number of divorces.
According to Coase theorem, both law (A and B) contain the same number of divorces. Under law A, some other situations such as the husband is ready to commit in divorce but wife is not ready to accept the divorce, and the husband is keen on getting the divorce more than the wife...
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