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- W2550551476 abstract "Property rights specify an initial default position from which agents may subsequently bargain to determine their ultimate allocation. Following the seminal article of Grossman and Hart (1986), the economics literature discussing the optimal allocation of property rights has largely focused on how they a¤ect ex ante investments, under the assumption that bargaining always results in ex post e¢ cient outcomes. In this paper, we instead examine how property rights a¤ect the e¢ ciency of bargaining and the nal allocations that result.1 According to the Coase Theorem(Coase 1960), in the absence of transaction costs,parties will reach Pareto e¢ cient agreements regardless of initial property rights. We instead examine settings in which this may not happen due to transaction costs associated with asymmetric information. That property rights may matter for the e¢ ciency of bargaining can be seen by comparing Myerson and Satterthwaites (1983) conclusion that private" @default.
- W2550551476 created "2016-11-30" @default.
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- W2550551476 date "2014-01-01" @default.
- W2550551476 modified "2023-09-27" @default.
- W2550551476 title "Property Rights and the E¢ ciency of Bargaining" @default.
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