Property rights are legal rules that decide who owns an asset and has the authority to use it, benefit from it, or sell it. Clear and enforceable rules are essential for markets to function efficiently.

Key benefits include:

• Private property rights allow owners to prevent others from using their assets without permission.
• They enable the price mechanism to work, which helps determine the value of goods and services.
• They help manage externalities (side effects of economic activity) by assigning clear responsibility.
• They prevent the over-exploitation of resources, often referred to as the tragedy of the commons.