Proper noun
Coase theorem
(economics) A theorem stating that, if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property.
When transaction costs are low, the Coase theorem says that the political marketplace (the decisions of the legislatures) will allocate resources to the highest valued point (Coase 1960 citation ). Source: Internet
With low transaction cost s, the Coase theorem will come into play. Source: Internet