Property rights fail to define ownership and/or liability surrounding an event or an object
Externalities often stem from issues surrounding property rights. Chapter 14 highlights the two issues at the heart of the matter: 1) Property rights fail to define ownership and/or liability surrounding an event or an object 2) Enforcement and transaction costs are too costly to assert liability
There are many ways to curb externalities. These include laws defining liability, rules and regulations to curb behavior, market influences, and social norms. How is the externality being currently impacted by these factors? Are they sufficient for the well-being of the Clemson University campus? If you were placed in charge of this issue which rules would you add or remove from campus policy? How would these actions impact both the health and utility of students on campus?