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Which concept by Coase suggested a different approach to traditional antitrust policies?

  • Monopolistic Competition

  • Pareto Efficiency

  • Coase Conjecture

  • Coase Theorem

Answer

The Coase Theorem posits that, in the absence of transaction costs, a market equilibrium will be reached regardless of the initial allocation of resources or property rights. This suggests that antitrust policies aimed at preventing monopolies and cartels may sometimes be unnecessary or even counterproductive, as efficient outcomes can be achieved through bargaining and negotiation between the parties involved.
Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate

Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate

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