6.3 evolution of property rights Flashcards
1
Q
Which property right regime do all resources start as?
A
communal/open-access
2
Q
Why do resources turn from open access to private property?
A
when the benefits of internalization are greater than the costs
3
Q
cost-benefit analysis
A
If the benefits of creating property rights
outweigh the costs of creating property
rights, then it will become efficient to
set up those rights.
