In the summer, I lоve hаving bоnfires, but my neighbоr dislikes the smoke thаt blows in his windows. The bigger my fire, the more I enjoy it, аnd the more he suffers from the smoke. A. Without using the word efficient, define the "efficient bonfire size." B. Suppose I am entitled to have whatever size fire I like on my property. Does the Coase Theorem predict I'll have fires bigger than, smaller than, or the efficient size? Why? How will this occur? C. Suppose my neighbor is entitled to an injunction preventing any fires that blow smoke onto his property. Does the Coase Theorem predict I'll have fires bigger than, smaller than, or the efficient size? Why? How will this occur? D. Under a damages rule, would you predict I'll have fires bigger than, smaller than, or the efficient size? Why? How will this occur? Now suppose that, instead of the smoke, my neighbor is worried about the risk my bonfire will spread and burn down his garage. E. Under a strict liability rule, each time I have a fire, will I take more than, less than, or the efficient amount of care to prevent it from spreading? Why? F. Under a simple negligence rule, each time I have a fire, will I take more than, less than, or the efficient amount of care to prevent it from spreading? Why? G. Under a rule of no liability, each time I have a fire, will I take more than, less than, or the efficient amount of care to prevent it from spreading? Why? H. Under a strict liability rule, will I have more than, less than, or the efficient number of fires? Why? I. Under a simple negligence rule, will I have more than, less than, or the efficient number of fires? Why? J. My neighbor can also help reduce the risk my fire spreads, by raking up dead leaves on his property. Which rule for my liability, strict liability or simple negligence, will lead him to rake more leaves? Why?
Wie lаnge dаuert ein Rundgаng durch das Reichstagsgebäude?