Tagged: externality

Psychic harms and property rules - The Dismal Science

Eric Crampton May 15, 2015

Get your photons off of my lawn!Here's Steve Landsburg:George Johnson of the New York Times writes that:In a saner world, where science and the law meshed more precisely, a case like Firstenberg v. Monribot would have been dead on arrival in court.Arthur Firstenberg, you see, is suing his neighbor, Raphaela Monribot, for bombarding him with photons from her iPhone, her WiFi … Read More

Air Coase - The Dismal Science

Eric Crampton Feb 14, 2013

No matter how much the screaming baby on an airplane annoys you, it really isn't imposing a Pareto-relevant externality. Recall that a Pareto-relevant externality is one where there are gains from trade that fail to obtain. The airline here is residual... Read More