a county is an administrative or political subdivision of a state that consists of a geographic region with specific boundaries and usually some level of governmental authority. The term "county" is used in 48 U.S. states, while Louisiana and Alaska have functionally equivalent subdivisions called parishes and boroughs, respectively.
Private parties can negotiate to an efficient solution in the presence of externalities if the <u>transaction costs</u> is (are) relatively low.
<u>Potential way to internalise externality </u>: Including negative externality price in party tickets & using it for - better sound development , compensating residents for a negative effect to them
Explanation:
Coase Theorem states that two parties can bargain & reach at a socially efficient outcome, internalising negative externality impact - if the transaction cost is low.
Eg : A neighbouring farm & ranch, where Ranch's cattle wander & destroy farm's crops. It would be efficient to solution to draw a fence around the farm, contributed by the rancher also
In this case : Noise negative externality can be internalised by :
Including the externality valuation as increased price in the party tickets
Using the surplus collected money to internalise externality - for :
- Noise solving ways, eg headphones dj & sound proof venue development
- Compensating nearby locality for the adverse effect on them
