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Sort of? AFAIU, according to the Coase theorem the courts should never have needed to be involved. Indeed, the rule prohibiting relief for those coming to the n
by wahern 6y ago
Sort of? AFAIU, according to the Coase theorem the courts should never have needed to be involved. Indeed, the rule prohibiting relief for those coming to the nuisance is designed to prevent people from using the courts as an end run around bargaining with the nuisance owner. The characterization of the judgment as achieving global optimality using transfer payments brings to mind Kaldor–Hicks.
Here's an interesting paper that discusses the case's relationship to the Coase theorem: Coming to the Nuisance: An Economic Analysis from an Incomplete Contracts Perspective, https://www.dartmouth.edu/~csnyder/491.pdf https://www.dartmouth.edu/~csnyder/491.pdf