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A lawsuit seeking compensation for damage from pollution:

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A lawsuit seeking compensation for damage from pollution:

A lawsuit seeking compensation for damage from pollution
A) will ruin any chances the Coase theorem has of working to avoid the situation in the first place.
B) is a substitute for bargaining, but an inefficient one.
C) is a substitute for bargaining, and it can lead to the efficient solution.
D) is preferable to switching the property rights between the parties.
E) is how the Coase theorem was meant to work in the first place.

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Microeconomics

Edition: 8^th

Author: Pindyck

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