The Coase theorem states that, under the right conditions, the parties to a property rights dispute will be able to agree on an economically optimal solution, regardless of the initial distribution of property rights.
The Coase theorem offers a potentially useful way to think about how best to resolve conflicts between competing businesses or other economic uses of scarce resources.
For the full application of the Coase theorem, there must be conditions for efficient, competitive markets and, most importantly, zero transaction costs.
In the real world, ideal economic conditions are rare, so the Coase theorem is better suited to explain the causes of inefficiency, rather than to resolve disputes.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
A ballpark figure is a rough estimate of what something might mean in numerical terms when a more precise number is estimated, such as the cost of a product.
The binomial distribution is a probability distribution that generalizes the probability that a value will take on one of two independent values given a set of parameters or assumptions.
Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital.
The Central Limit Theorem (CLT) states that the distribution of sample means approaches a normal distribution as the sample size increases, regardless of the distribution of the population.