Caithness Energy, a big company from New York, is building wind farms in eastern Oregon. Prior to

Question:

Caithness Energy, a big company from New York, is building wind farms in eastern Oregon. Prior to construction the company offers residents $ 5,000 each to sign a waiver saying they will not complain about excessive noise from the turning wind turbines [Yardley, 2010]. Analyze this offer in terms of the Coase Theorem.