In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?

Question

Quizplus · Accepted Answer

In the scenario where trees of one neighbor are blocking the view of another, it is more likely that the two parties can come to a mutual agreement through negotiation or bargaining to trim or cut down the trees without government intervention. This could be achieved through a voluntary agreement between the two parties, unlike in cases of littering on highways, overharvesting of alligators in Louisiana, and poaching of elephants in Africa where individuals are unlikely to cooperate in the absence of legal sanctions.

In Which of the Following Externality Situations Would It Be