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Externalities. My daughter lived across from an apartment building filled with Haverford College students who party through the night and make it hard for her to sleep, and harder for her to get up for work in the morning
a. What are the conditions of an efficient resolution to this dispute?
b. If there is a law protecting the neighbors' right to quiet, then what can the students do to continue their party? Can there be an efficient outcome? Would you expect this to happen?
c. If there is a law allowing noise (or at least no law prohibiting it), then what could the community do to get rid of the party (legally)? Can there be an efficient outcome? Would you expect this to happen?
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Criteria - The example should demonstrate either subsequent the concepts or acting with disregard to the concepts and have either good or bad effects; no word limit and no page requirement.
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