Bargaining between doctor and confectioner is costly

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Reference no: EM132283038

The case of Sturges v Bridgman involved a confectioner who had operated heavy machinery at a certain location for several years as part of his candy-making business. When a doctor built a consulting room directly against the confectioner’s premises, however, he found that the noise and vibration were a disturbance to his practice. He sought an injunction to prevent the confectioner from using the machinery. Suppose it would cost the confectioner $150 to move his machinery to a location where it would not disturb the doctor, and it would cost the doctor $200 to relocate the consulting room.

a. Assume that the doctor and confectioner can bargain costlessly. What will be the outcome if the court grants the injunction? What if the court does not grant it?

b. Assume that bargaining between the doctor and the confectioner is costly. What will be the outcome if the court grants the injunction? What if the court does not grant it?

Reference no: EM132283038

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