Thursday, December 22, 2011

Localized Externalities and the Coase Theorem

For those micro teachers seeking to spice up their classes, consider teaching this case.   Apparently, there are some obese people who fly in the coach section of airplanes.  If such an individual sits in a middle seat next to you, what happens next?  This article explores the "spillover" effects.   It raises a broader issue of how we share common space.  What are your rights?  When has someone intruded on "your" space?

1 comment :

Ryan said...

Since it's in the context of a business transaction with the airline (and so presumably affects each party's demand curve), is this even a non-atmospheric externality?