Coasian view of property rights

The Coasian view of property rights suggests that when property rights are clearly defined and tradable, parties can negotiate to resolve conflicts or externalities efficiently, regardless of who initially owns the rights. Essentially, if rights are secure and transaction costs are low, resources will be allocated optimally through bargaining. This approach emphasizes the importance of clear legal boundaries and voluntary agreements in achieving efficient outcomes, even in situations like pollution or land use disputes, without necessarily requiring government intervention.