Property and Power Flashcards
1
Q
What is joint surplus
A
The total gain from economic rents from all involved in an interaction.
1
Q
what is meant by gains from exchange
A
The gains made from a transaction compared to how they would’ve fared if the exchange was not made
2
Q
What is bargaining power
A
Bargaining power is the extent for which a person is capable of securing larger economic rents through an interaction.
