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All the same to receive more than if will leave cattle breeding, on the size equal
To their rents minus value of a damage. If cattlemen do not pay for
Damage, maximum of that farmers would pay it for refusal of their actions, -
It is value of the pitted crop. It is less, than the additional income
Alternatives. Means, farmers cannot induce cattlemen to stop them
Activity. Until rents of farmers will be more than value
The pitted crop, all of them will receive still a net gain from continuation
Farming. Under any legal conditions and farmers, and cattlemen will be
To continue the activity. It is easy to show that will be reached thus
Maximisation of value of manufacture. If rents of farmers are equal 100 dollars and
Rents of cattlemen are equal 100 dollars, and value of the destroyed crop is equal 50
Dollars, value of cumulative production will appear it, when both those, and others
Will continue the activity, than otherwise. In these conditions a gain
Values of manufacture will be made by 150 dollars (the sum of rents minus value
The poisoned crop). If either farmers, or cattlemen leave the
Activity, gain of value of manufacture will fall to 100 dollars
Now we will look that will be in a case when the damage from it is less, than rents
Cattlemen, but more than rents of farmers? At first we will assume that cattlemen
Should indemnify a loss caused by their cattle. After indemnification cattlemen
Values it a crop (that they in a status to make, as their rents
More than damage size), farmers will receive the income same, as though
Any it was not (payments of cattlemen for a damage compensate the income from
Sales in the market). But it is less than rent of farmers, than value of the poisoned
Crop. Farmers would agree not to process the earth at all, if payment
Surpassed the sum of their rents. Position of cattlemen would improve, if they
Could induce farmers - for the sum smaller, than value poisoned
Crop - to refuse earth cultivation (and by that to stop causing
Damage). In the circumstances assumed by us the transaction would be concluded, in
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