The Farmer and the Rancher

Economists are interested in what economists call externalities, where my actions either to harm your or help you. And why is it in those situations some legal structures make more sense than others? So let's talk about some of those examples andand what comes into play with transaction cost when he was trying to explainYeh i i well qout the most famous example is te the the rancher and the the farmer. You have railroads going through a field. That's a socially useful activity. But railroads throw off sparks, and sparks always run a risk of igniting crops growing near by. The railroad imposes a cost on the farmer. We we need a way to to deal with