Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5,000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3,000 more than his next best alternative.
-Refer to the information above.The most effective way for Paul to ensure his view would be preserved would have been to
A) lobby for environmental restrictions.
B) plead with Sid not to develop the land.
C) offer to pay Sid not to develop the land.
D) purchase the land and acquire the private property rights to the view.
E) repeatedly testify before the city council about future traffic congestion from the shopping centre.

Question

Quizplus · Accepted Answer

The most effective way for Paul to ensure his view would be preserved would have been to purchase the land and acquire the private property rights to the view. This would give him legal control over the use of the land and prevent Sid from building anything that would obstruct his view. Lobbying for environmental restrictions or testifying before the city council may not be effective since those decisions are ultimately made by the government and not Paul. Pleading with Sid may also not be effective since Sid's financial interests and Paul's view do not necessarily align. Offering to pay Sid not to develop the land may not be feasible for Paul since the cost may be too high for him to bear.

Paul Owns a Home on the Top of a Hill