tag:blogger.com,1999:blog-5404820640426099135.post8945362022466557454..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: How to misunderstand the Coase theorem 3 (updated)Paul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5404820640426099135.post-81254938873139783532014-08-29T08:41:19.267+12:002014-08-29T08:41:19.267+12:00Mike. The problem is that the airline has not clea...Mike. The problem is that the airline has not clearly defined what the rights are. It should say you can or can not recline, then people could bargain if they want to.Paul Walkerhttps://www.blogger.com/profile/13731003529546075700noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-69057755546907747792014-08-29T08:15:27.062+12:002014-08-29T08:15:27.062+12:00There are no undefined property rights here: eithe...There are no undefined property rights here: either the airline has temporarily allocated seat-usage rights to customers or the airline has retained those rights.<br /><br />It is reasonable to believe customers gain the temporary right to use of all seat capability of a normally functioning seat. (If for instance a seat malfunction allowed a seat to recline entirely into the seat behind, whereas well-functioning seats only reclined by a few centimeters, only the normal amount of reclining is part of the customer's license. Also, of course, customers cannot manually adjust their seat in ways to gain additional centimeters of recline.)<br /><br />With rights well-defined, there are no externalities. A device such as SeatDefender is simply an attempt to prevent a neighbor from exercising the full range of the neighbors rights.Mikehttps://www.blogger.com/profile/04861988632195584930noreply@blogger.com