I suggested that Emma use Coase Theorem to retrieve her stolen glasses. The Coase Theorem states that when there are conflicting property rights, the involved parties can bargain or negotiate to an efficient outcome when economic conditions are ideal. It may be clear to others that Emma has property rights over the sunglasses, but if the friends try to question her, she could prove her rights with the receipt when she ordered them or photos of her wearing the glasses. If the friends feel it necessary to keep the sunglasses, then they should pay Emma $90 for using them or the cost to her when she originally bought them after taxes and shipping. However, if they find that these marginal costs of keeping the glasses exceed the marginal benefits or amusement they find in watching Emma beg, they could give her back the sunglasses, and the issue would be resolved. Coase Theorem unfortunately is a model we use when economic conditions are perfect. If they continue to refuse Emma's requests, then she may have to get the government involved to enforce her rights, or in this case ... the UJC.
Sunday, September 18, 2022
Case of the Stolen Sunglasses
This past week, my roommate Emma has been dealing with a case of stolen sunglasses. She was wearing them on Mad Bowl a couple of weekends ago, and they were taken off her head by some of her friends. These "friends" then refused to give the sunglasses back, took them home, and have been holding them hostage for the past two weeks. Emma, being an equipment manager for the UVA football team, needs her sunglasses for gamedays or she will not be able to perform her job. She has been texting them non-stop trying to retrieve them from their house, but these friends find it amusing to keep them locked up.
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I find this application of the Coase Theorem to be an interesting one, but I think it may be a little off in how it is all applied. From the readings and what we learned in class, I am not sure that this would be a proper situation in which to use the Coase Theorem, as this appears to be a case involving stolen property, rather than when the actions of party negatively impact another party. I think a situation that would be a better application of the Coase Theorem would be if Emma had special sunglasses for her job as a football manager, that were specially designed in some way to be extra protective against the sun at sporting events. However, these sunglasses create a glare when Emma wears them on game day that affects the view and vision of a certain seating section in the audience. Emma has rights to wear these special sunglasses, as she purchased them, has proof with the receipt, and was told she was allowed to wear them by the coaching staff. However, the audience members who are affected by the glare of her sunglasses have rights to the seats that they purchased and the view of the game that they were expecting to be provided. The Coase Theorem could be seen here if under some agreement of property rights, Emma financially compensates the audience members for the glare as she continues to wear her glasses at the game. Or on the reverse side, if the property rights are granted in the other direction, the audience members could financially compensate Emma for having her not wear the sunglasses at the game.
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