Question: Suppose that fires started by trains cause $ 4 0 0 in total damage, planting clover on all farms adjacent to the railroad costs a

Suppose that fires started by trains cause $

400

in total damage, planting clover on all farms adjacent to the railroad costs a total of $

800,

and installing spark arresters on all trains costs $

1, 000 .

Consider the following legal rules, and discuss whether each one is likely to arrive at the efficient outcome, including identifying potential obstacles that would have to be overcome: A property right for the train to throw sparks; and a property right for the farmers to be free from sparks.

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