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Are carried out, as introduction in contracts of necessary conditions will appear
Business by more expensive, than possible benefits. For simplicity we will assume that
All contract establishments directed on reduction of a damage, too
Roads. In our example if cattlemen are obliged to pay indemnification
For the damage caused by their cattle, farmers will not have bases for revision
Contracts, as indemnification for full or partial it crops
Will always indemnify a loss. But at cattlemen here other position. At them is
Stimulus to reconstruct the activity if the costs connected with it appear
It is less, than reduction of compensatory payments to farmers. We will assume, however,
That cattlemen are not obliged to compensate a damage, hence, at them are not present
Stimulus for change of the actions, and farmers should take measures for
Damage reductions provided that a gain of the income from rescued thus
Crop surpasses costs for achievement of this gain. It is easy to show that
Under such circumstances value of manufacture can appear it, when
Cattlemen are not obliged to indemnify a loss caused by their cattle, than when they
Are obliged it to do. We will assume that if cattlemen are obliged to indemnify a loss,
That they will consider that in their own interests acceptance of measures on full
To damage prevention and if they are not obliged it to do burdens of these measures
Farmers will incur. We will assume further that costs for prevention
Damage will make for cattlemen 80 dollars, and for farmers 50 dollars If on
Cattlemen the law has not assigned a damage liability, corresponding measures
Would be carried out by farmers. Their costs would make 50 dollars And if
Cattlemen should indemnify a loss caused by their cattle, they would undertake
Necessary steps for damage prevention. Their costs would make 80 dollars
From this it follows that value of manufacture above on 30 dollars (80 dollars - 50
Dollars) when cattlemen should not indemnify a loss. It does not mean that the originator
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