Efficient solutions to externalities

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The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain with a creative and unique example.

Reference no: EM13742864

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Efficient solutions to externalities : The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain with a creative and unique example.
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