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Negatively influences neighbours. The economic analysis of such situation usually
It was conducted in terms of discrepancy of a private and social product of factory, at
It economists mostly followed the approach which has developed Pigu in
"The economic theory of well-being". This analysis, seemingly, resulted
The majority of economists to the conclusion that would be desirable to make
The proprietor of factory responsible for a damage put by a smoke; or to impose
The owner of factory the tax depending on quantity of a smoke and equivalent in
Monetary terms to a put damage, or, at last, to deduce factory for limits
Residential areas (and can be, and from other areas in which the smoke will put
Damage the rest). I am convinced that offered ways of action are unsuitable in
That sense that their results will not be always favorable at all, and can
To be, they will be favorable seldom enough. devoted
To technical problems of the economic analysis, without
Links to an initial problem for which the permission this has been developed
Assumed that there would be desirable more obvious consideration of a question, though, This article, has arisen from studying
Broadcasting political economy. Arguments of present article in the latent kind
Contained already in previous where the problem of distribution of radio was considered
And telefrequencies (The Federal Communications Commission//The Journal of Law and
Economics 2, but the responses received by me, October 1959) and appear
II. Obojudostoronny character of a problem
The TRADITIONAL analysis blacked out the nature of a forthcoming choice. A question usually
It was understood so that here And the damage causes In, and it is necessary to solve, as we will limit
Preserving against a damage In, we attract a damage on A.Vopros who needs to be solved,
-- Whether it is necessary to allow and cause a damage In or it is necessary to allow In to put
Damage And? The problem in avoiding more serious damage. In mine
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