Nature of Competition: It’s the Property Right
A thesis: Nothing good comes for free. An antithesis: Nothing bad disappears for free. Confused? Don’t worry: Where there is a query, there is an answer. Boys, be curious! The Coase Theorem . Suppose a barking puppy in the neighborhood. It surely is annoying to most of us, the innocent bystanders. The barking sound is neither music nor a benefit. It simply is a noise and a disutility (-). How to get rid of the teasing or annoying (+)? There are two big ways to solve “ The Problem of Social Cost ” ( R. Coase , 1959, The Journal of Law and Economics ). The one is economic (in the short run, as always): We buy a quieter environment, a benefit, in return for the cost of monetary payout to be negotiated on free wills of the two parties concerned. If you wish in this regard, you may refer to The Art of the Deal by the great negotiator. ...