When the costs of negotiation between parties is low, whoever values the entitlement more is likely to possess it.
True
False
This issue pertains to the study of economics, specifically microeconomics, and it is grouped with other issues that have to do with bargaining theory and property rights. It is frequently discussed in relation to the Coase theorem, which is a cornerstone idea in the research on externalities and resource allocation. The Coase theorem discusses how resources are distributed when there are few transaction costs and free negotiation between the parties. The issue you raised in this situation emphasizes the significance of relative valuations by focusing on how an entitlement or resource is allocated when negotiation costs are low.
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