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To restore the argument which has led to its this conclusion. Let's assume that the railway should solve: to start up an additional train,If the railway should not be responsible for the caused damage, then,
Making of this decision, it would not switch on in costs increase of danger from
That the new train is started up, or faster train is started up, or she has not managed
Public products. Because of this discrepancy the railway chooses The decisions lowering value of all manufacture, - that it would not make, If should indemnify a loss. It can be shown on the arithmetic Example.
Let's present the railway which does not indemnify a loss from the fires caused
Locomotive sparks and which daily on not which line drives two trains. Let's assume that one train in day allows the railway to render services Value 150 dollars year, and two trains in day allow to render services Value 250 dollars a year. Further we will assume that costs on operation
One train 50 dollars a year, and two trains - 100 dollars a year are equal. In
Conditions of a perfect competition costs are equal to value reduction No matter where, if this reduction has manufactures by the reason Attraction of additional factors of manufacture by the railway. Clearly that The railway will consider profitable for to drive on two trains in day. But
Let's assume that one train in day will destroy fire (on the average for a year)
Crops by value in 60 dollars, and two trains a day will call destruction of crops
On 120 dollars In these conditions operation of one train in day lifts
Value of the general manufacture. The second train will allow the railway to carry out
For a year of additional services on 100 dollars But reduction of value of manufacture in
Other places will make 110 dollars a year: 50 dollars as a result of attraction
Additional factors of manufacture and 60 dollars as a result of destruction Crops. As it would be better, that the second train was not, (and it was not It is started up in case the railway would be obliged to indemnify a loss), Then a conclusion that the railway should be responsible for caused by it The damage, looks irresistible. Undoubtedly, of this kind the logic lies in To basis of a position of Pigu.
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