Ira Goldman invented the Knee Defender, which keeps the airline seat in front of you from reclining.

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Ira Goldman invented the Knee Defender, which keeps the airline seat in front of you from reclining. He argues that airlines have sold the space between two seats to the person occupying the seat but also to the person in the seat in front of that seat by allowing the occupant of that seat to recline it. Assume that Goldman is correct. According to the Coase theorem, does this airline policy make it impossible for passengers to achieve an economically efficient outcome with respect to the issue of reclining seats? Briefly explain.
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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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