Coase theorem to assign liability rights between the parties

Assignment Help HR Management

Reference no: EM131704872

A farmer and a rancher in the wild west (there is no functional legal system) use adjacent land to raise corn and cattle. The cattle frequently trample and eat the farmer’s crop. The farmer insists that the rancher should be responsible for keeping his cattle away from the corn. The rancher argues that the farmer should responsible for keeping the corn free of the cattle. What does the Coase theorem have to say about this situation? What effect might an impending marriage between the farmer’s son and the rancher’s daughter have on your answer? Now suppose a territorial government is established with a marshal and a judge. Explain how the judge could apply the Coase theorem to assign liability rights between the parties. How might the invention of barbed wire (a relatively inexpensive method for making fences) affect your analysis?

Reference no: EM131704872

Questions Cloud

What is the impact of the tax rate change : On 1 April 2013, the company rate of income tax was changed from 35% to 30%. What is the impact of the tax rate change on income tax expense

Discuss the most emphatic and sometimes violent ways : the most emphatic and sometimes violent ways. What is it about the idea that people in non-Western societies don't like

Please explain insertion-deletion and modification anomalies : Can you please explain insertion, deletion, and modification anomalies. Why are they considered bad? Illustrate with examples

Prepare traditional and contribution margin : Prepare The Fantastic Ice Cream Shoppes June income statement using a traditional format - June income statement using a contribution margin format

Coase theorem to assign liability rights between the parties : Explain how the judge could apply the Coase theorem to assign liability rights between the parties.

Discuss the relationship of educational philosophy : Discuss the various philosophies, differences in those philosophies as related to education, and their impact on curriculum theory and design.

Use of standards such as variable naming : Discuss how the use of standards such as variable naming, the use of class diagrams, and good programming practices all contribute.

Make a statement of revenues and expenditures : In an effort to improve its recreation facilities and to provide employment during the recession, Empire State created a Trails Special Revenue Fund.

Defective parts are desired from fabrication operation : During one eight-hour shift, 750 non defective parts are desired from a fabrication operation.

User Account

All Pages