Zach Newton, Chapter 3, Question 4

In the very first example of negative externalities, Wheelan describes a situation in a film of an agribusiness company dumping pollutants into the local water supply, similar to our in class story of Grunge Inc. However, the film showed that the only solution to this matter was through government intervention. Later in the chapter, we find out that it is possible to solve such an issue, according to Coase who says that "the private parties will always come to the same efficient solution." This is to say that once the people get fed up with the cancerous pollution, they will go to the company and work out a deal that best suits everyone. Success here seems very probable as it has happened before.