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Efficiency and Income Distribution

Even though property rights are fully given and cost-less enforced and transaction costs (i.e., information costs, contracting costs, and mobility costs) are nonexistent, in that case equilibria in all markets in a whole economy may arguably ever be: (1) allocatively inefficient. (2) productively inefficient. (3) distributively inefficient. (4) inequitable. (5) unstable.

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