To recline or not to recline an airplane seat is a problem for passengers and airlines because of pitch, profits, property rights, and your philosophy.
According to Ronald Coase, if reclining in an airline seat creates a negative externality, both parties can negotiate because the transaction costs are low.
Assume for moment that you are in a college dormitory. You have a final exam tomorrow and someone in a nearby room is playing very loud music. Most of us would say that the music maker has to stop. Nobel…
econlife®
Connecting economics with everyday life.
Located at the intersection of current events, history, and economics, econlife® slices away all of the layers that make economics boring and complex. We like economics and we would like for you to like it too.
