The Coase "theorem" posits that independent actors can reach an economically optimal solution by bargaining with each other. For example, one radio station can

The Coase "theorem" posits that independent actors can reach an economically optimal solution by bargaining with each other. For example, one radio station can pay another not to interfere with their broadcast. Or someone facing drought can pay someone to stop leaking methane. Implicitly, that bargaining includes the use or withholding of violence. That is where the Coasian threat comes in. If one party decides that the price needed to pay off the whole world to not leak methane is too high, they could just kill anyone who leaks methane. Or at least incapacitate the malicious actor's infrastructure enough to prevent them from acting maliciously. There is also a discussion to be had about credible commitments when bargaining with malicious and untrustworthy actors such as Putin. If Putin promises not to leak methane, bomb hydroelectric infrastructure, or invade Poland, how can we be sure he will stay true to his promise? Why wouldn't Putin just wake up tomorrow and demand more money or else he will start leaking methane again? https://en.m.wikipedia.org/wiki/Coase_theorem https://en.m.wikipedia.org/wiki/Coase_theorem https://www.cambridge.org/core/journals/international-organization/article/abs/democratic-states-and-commitment-in-international-relations/A59F5EA9ED7F327C12A3EB990C100B12 https://www.cambridge.org/core/journals/international-organi...