Economics · Environmental Economics

Consider the following statements about the Coase Theorem: I. The Coase Theorem holds that externalities can be resolved through private bargaining regardless of initial property rights assignment, provided transaction costs are zero. II. The Coase Theorem implies that government intervention is always necessary to correct externalities. III. The theorem requires well-defined property rights as a precondition. IV. The Coase Theorem is primarily applicable in large-number externality problems. Which of the above statements are CORRECT?