It seems we have agreed that open threads will continue but that they will go in the Discussion section, so here's this month's thread.

It seems we have agreed that open threads will continue but that they will go in the Discussion section, so here's this month's thread.

How does that make sense? You are correct that under sufficiently generous Coasian assumptions, any attempt at predation will be negotiated into a zero-sum transfer, thus avoiding a negative-sum conflict. But that is still a violation of Pareto optimality, which requires that nobody ends up worse off.

I don't understand your comment. There can be many Pareto optimal outcomes. For example, "Alice gives Bob a million dollars" is Pareto optimal, even though it makes Alice worse off than the other Pareto optimal outcome where everyone keeps their money.