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In the city of Bolzano (in Northern Italy), homeowners are responsible for cleaning up the sidewalk in front of their house, and they can be
In the city of Bolzano (in Northern Italy), homeowners are responsible for cleaning up the sidewalk in front of their house, and they can be fined if they do not.
A and B are next-door neighbors. They are the same age, equally fit, have equal-sized side- walks and value their time about the same.
However, after each snowfall, B clears the sidewalk in front of his house with a shovel, and A clears the sidewalk in front of his house with a brand new, extremely powerful snowblower. Clearing the sidewalk takes A five minutes, while it takes B an hour. A will not lend B his snowblower since it takes a while to learn how to use it properly, and he is afraid that B will break it.
Define the Normative Coase view of how property law should be designed. Taking this view, who would end up clearing B's sidewalk and why?
A and B are next-door neighbors. They are the same age, equally fit, have equal-sized side- walks and value their time about the same.
However, after each snowfall, B clears the sidewalk in front of his house with a shovel, and A clears the sidewalk in front of his house with a brand new, extremely powerful snowblower. Clearing the sidewalk takes A five minutes, while it takes B an hour. A will not lend B his snowblower since it takes a while to learn how to use it properly, and he is afraid that B will break it.
Define the Normative Coase view of how property law should be designed. Taking this view, who would end up clearing B's sidewalk and why?
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