Coase Theorem in Action

This article is a great example of firms trying to pay for their social costs. In this instance, noise....check it out: http://www.nytimes.com/2010/08/01/us/01wind.html?_r=0


What is the Coase Theorem? To quote from a fellow blogger: "The Coase Theorem states that, when conflicting property rights occur, bargaining between the parties involved will lead to an efficient outcome regardless of which party is ultimately awarded the property rights, as long as the transaction costs associated with bargaining are negligible." 

Unfortunately bargaining is much easier to talk about doing than actually doing (think of the 
"used car salesmen" example).


Source: http://economics.about.com/od/externalities/a/The-Coase-Theorem.htm