Hamid and Lee Are Neighbors

question 18

Essay

Hamid and Lee are neighbors. Hamid has a barking dog that he keeps in his backyard for property protection; he values the dog at $600. Lee despises the constant barking, because it costs him $800 in lost sleep.
a. If Hamid has a legal right to own a barking dog, is there a Coase solution to this problem?
b. Because Hamid speaks Farsi and Lee speaks Korean, they need an interpreter to handle negotiations regarding the dog. Is there a Coase solution to this problem if the interpreter costs $70? How about if the interpreter charges $210?

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Definitions:

Task Force

A temporary group of employees responsible for bringing about a particular change.

Group Of Employees

A collective of individuals who work together in the same organization and contribute towards achieving the organization's goals and objectives.

Project Teams

Group similar to task forces that normally run their operation and have total control of a specific work project.