This past weekend I had the pleasure of visiting my friend's newly adopted kitten, Billy Bop. I admit that I am a dog person through and through, but boy oh boy did I find true love with Billy Bop. His eyes were so eye-like (round, and so big you can see your soul in them), and his fur was so fluffy it made cotton candy seem hard as brick.
However, when at my friend's apartment I couldn't help but be distracted by the tremendously loud music and stomping from the ceiling above. It was absolutely irritating. And poor poor Billy Bop who was trying to sleep. My friend was considering calling in a noise complaint, but as I looked Billy Bop in the eyes I was reminded of our beloved Coase. With only two parties (my friend and her upstairs neighbor), and the only presumable transaction cost being the flight of stairs going up to see the neighbor (sorry Coase, there will never be "no" transaction cost), surely a solution could be worked out amongst them both without having to involve an official regulatory body.
Granted, a third party may be needed to determine who's at fault. If the neighbors were at fault, perhaps they could pay Sarrah in kitten food to continue playing their loud music, hence internalizing the externality. Seeing Billy Bop's face, I could tell he was an eager economist-in-the-making.
Fig 1: Billy Bop
(a kitten that is adorable)
1 comment:
So what happened?
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