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27.2 Coasian Bargaining as a Solution to Externalities Imagine that the table below reects your preferences and your roommates' preferences for the noise level in
27.2 Coasian Bargaining as a Solution to Externalities Imagine that the table below reects your preferences and your roommates' preferences for the noise level in your shared living space this weekend. You have an important exam to prepare for, so it's important to you to keep the noise level down. But your roommate has different preferences. The numbers in the table reflect the utility of each person under each noise level. Noise Level Quiet Moderate Loud You 12 Roommate 0 The default noise level is \"Moderate\". If either person wants to persuade the other to agree to a different noise level, they will have to offer them something in exchange. Suppose that you try to bargain with your roommate to keep your shared living space quiet over the weekend. How much would your offer have to increase your roommate's utility in order to make up for their lost utility from moving from Moderate to Quiet
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