3 ms·
Very Coasean. The agent who can most easily change the costs of a behavior internalizes it in a functioning market. Instead of neighbors being force to suffer t
by gwern 7y ago
Very Coasean. The agent who can most easily change the costs of a behavior internalizes it in a functioning market. Instead of neighbors being force to suffer the guitar playing, the effects are removed (via soundproofing) and the guitar player pays the premium.