Your roommate has the right to play her stereo during the day. But you find the best time to study is during the day, and the stereo playing makes it hard for you to concentrate. You tell your roommate that you will do her laundry every week if she does not play the stereo during the day and she agrees to this. This is an example of the

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This is an example of the Coase theorem, which states that in a situation where property rights are not clearly defined, bargaining between the parties involved can lead to an efficient outcome regardless of which party initially holds the rights. In this case, the roommate has the right to play her stereo, but the other roommate is able to negotiate a solution that is mutually beneficial. The offer to do laundry in exchange for turning off the stereo demonstrates how the parties can find a way to cooperate and reach a mutually beneficial outcome.

Your Roommate Has the Right to Play Her Stereo During