Chapter 10 Reflection:

What is your favorite example of a negative externality?  Could the problem be solved via negotiation (Coase Theorem)?  How or why not? Do you favor regulation to solve this externality?  Why or why not?  

My favorite example of a negative externality discussed in the book was the barking dogs. This is a normal existence to all our lives to hear barking dogs. The neighbors are disturbed by the noise of the barking dog but this problem can be solved with either the owner purchasing a bark collar for the dog, dog training classes or sessions or a civil conversation with the neighbors. But depending on the situation, the problem can also escalate to “please quiet your dog or I am going to file a noise complaint.” And this would not be keeping the neighbors happy.

As for regulation to solve this issue, some dogs bark and some do not. Some people get irate by barking dogs and some do not. The government does enforce a do not disturb the peace which barking dogs would fall under this category. I would favor the regulation if I lived in a neighborhood and I had an excessive barking dog right in my area that bothered our family life but not if I lived in the country and I had several of acres between me and another property. Right now we I have a dog that occasionally barks at the wildlife around our property but that goes with living in the country.