A Political Coase Theorem?

I want to make the argument that the Coase Theorem can be applied to a bargaining problem between two (or more) states. More specifically, I want to suggest that the logic of Coasian bargaining potentially undermines the idea of a monopolistic state, and any such state can only be justified insofar as it does not suppress the formation of new states (i.e., does not quell secession). This has implications for theories of territorial secession and federation, the protection of territorially dispersed minorities, and the emergence of non-territorial, ‘virtual’ states.

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