The coase theorem suggests that private negotiation will lead to the correction of market failure when
(i) Only a few people are involved.
(ii) Property rights are clearly recognised.
(iii) Negotiation costs are low.
(iv) People are having asymmetric information.
Select the correct answer from the codes given below :
1
(i), (ii) and (iii) must hold true.
2
(i) and (iv) must hold true.
3
(i), (ii) and (iv) must hold true.
4
(iv) and (iii) must hold true.