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And the cattle of the owner of ranch regularly comes on fields of the farmer.
If the owner of ranch does not bear under the responsibility law for
Made by its herd it, that, dealing with a question about
Cattle livestock, it will not take into consideration
Damage caused to it (i.e. It will not bear the full
"Social costs of cultivation of cattle"). But if
The state will demand from the owner of ranch of payment of the tax,
Equal on size to the put losses, then at it
There will be a stimulus completely to consider consequences of the actions;
Outer effects will turn for it to the internal
However in the theorem of Kouza the situation is estimated differently: if
The law resolves to the farmer and the owner of ranch voluntary it
In the agreement apropos it then has no
Values, the owner of ranch bears responsibility for the caused
It a damage or not. We will admit, the farmer receives on the fields
10 it grains, and the herd of the owner of ranch totals 10 cows.
Cultivation of one more cow will manage to it in 50 dollars, and it
The market price at sale will make 100 dollars Limiting
Losses of the farmer from increase in herd at one head will be
Are equal 1 it grains, or in cost expression - 80 dollars (20
Dollars of a factor cost plus 60 dollars of the half-received profit).
Dollars (50 + 80), and social benefit from cultivation
Additional cow - 100 dollars Clearly that such
Distribution of resources inefficiently. But if the owner of ranch
Should indemnify to the farmer the caused loss, then,
Having weighed the private benefit and the private costs
(Cost of cultivation plus indemnification), it will refuse from
Decisions on increase in a livestock of herd on one unit 6.
The private parity costs/benefits coincides with social,
Distribution of resources will appear effective.
However, as has shown R.Kouz, a situation it will be perfect
Symmetric and in the event that the owner of ranch does not bear
Any responsibility for it. Simply the farmer will offer
Then to the owner of ranch "repayment" for refusal of the decision about
Cultivation of one more cow. The size of the repayment will fluctuate
From 50 dollars (profit of the owner of ranch on cultivation
The eleventh cow) to 60 dollars (profit of the farmer on sale
The tenth centner of grain). Refusal of such transaction contradicted
To aspiration of economic agents to maximisation of the
Well-beings. The outcome appears the same irrespective of
Whether there is at the farmer a property right to collecting
Losses from the owner of ranch or the owner of ranch has a right on
Unobstructed it cattle on fields of the farmer.
Really, manufacture structure in both variants
Remains identical: 10 it grains and 10 beasts. Resources
Are distributed on spheres where they give the maximum return.
In the first case the farmer has the right of the veto on use
The owner of ranch of its fields, in the second - the owner of ranch has
The right of free using fields of the farmer. Nevertheless
The property rights all the same pass to that party, for
To which they represent the greatest value. When
Exist lawful possibility to conclude the bargain, all
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