Robson, Alexander R. W.; Skaperdas, Stergios - 2002
remove the ambiguity or bargain and settle privately, they incur enforcement costs. When the parties bargain, a version of … the Coase theorem holds. Despite the additional costs of going to court, other ex post ine.ciencies, and the absence of … especially true in dynamic settings whereby a court decision saves on future enforcement costs. When the parties do not negotiate …