To diminish the city’s noise pollution, Mumbai is experimenting with traffic lights that last longer when drivers honk too much.
Rather like the reclining chair debate, the battle of the airplane window shade has also become a source of passenger conflict.
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.
Instead of command and control, a reverse auction or a Coasian solution would provide better ways to manage overbooked flights and bumped passengers.
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…