Property rights, TV, Kids.
I came across an interesting question at the end of one of the chapters of a book I'm reading about property and rights. It asks how parents might let two kids fighting over what to watch on TV solve that problem through negotiation among the kids.
The problem, of course, is that there's a lack of clear property rights, making negotiation difficult. What few seemed to get is that if the parents just assign property rights to one or the other, it's a situation of low transactions costs and negotiation should work.
For example, give Child 1 the right to decide what to watch. If Child 2 really values what HE wants to watch highly enough, he might be willing to make a trade to obtain that right. For example: "I'll wash the dishes the next time it's your turn if you let me watch my show instead of yours."
If you really get the Coasean insight, you realize that it doesn't matter which kid has the right to the TV as long as that right is clear and the transaction costs of negotiating are low. If those hold, a mutually beneficial solution will be found.
(Yes, the distribution of gains will depend on who has the rights, but both parties are better off when the rights are clear than when they are not, especially if you include the costs of disagreement.)
Its a day to day thing in most families but the best way is to let kids negotiate among themself.
thanks for sharing it to us Good Job!
What book are you reading? I'm wondering why it is imagined as property right specifically and not some other form of ownership right.
In any case, while I think there is a definite upside to empowering negotiation, I think it is tempered by the fact that bestowing rights on children will lead them to feeling entitled. After all, isn't that the core principle of an ownership right? So I don't think I would implement it unless the kids actually earned that right or it was in some sense clear why the deserved it.
Very nice little discussion on property rights @honeybee. I read an interesting article in 'the economist' using an example of cake cutting. Two people were squabbling over how to share a cake. The solution offered was that one person cuts the cake deciding what they deemed a fair split while the other person chooses which piece of cake they should have. The cutter is happy as he/she has determined the split to be fair. The selector is happy as they get at least more than their desired fair share. This isn't 100% fail safe as the cutter could be a dick and cut the cake in a really bizarre stupid way. I'm sure something similar can be applied to TV time sharing.
Wow, Coase Theorem, you are getting technical. Your application is good. I hope you are also aware 99% of Steemians will be lost. I hope your 1% target audience shows up.