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coase-prohibitively high TAC

by peter on 26 Jul. 2008 15:12 Hi, on page 42, it is written that the initial allokation of property rights does effect the distribution of income. Looking on page 39, the initial assignment appears to have no effect on A‘s or B‘s income,assuming prohibitively high TAC and thus no reallocation. B and A would have still the same respective income levels regardless whether A is assigned the "Clean Air Right" or B the "Smoke Right", because no bargaining takes place at all. What is my mistake? thank you Web search, Forum search for coase prohibitively high TAC