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Clarification
:::: It gets more complicated as the workers burn through their savings with leisure, however, particularly with their unrealistically declining earning power.--[[User:Aschlafly|Andy Schlafly]] 21:11, 14 August 2009 (EDT)
:::: It gets more complicated as the workers burn through their savings with leisure, however, particularly with their unrealistically declining earning power.--[[User:Aschlafly|Andy Schlafly]] 21:11, 14 August 2009 (EDT)
::::: Sorry, I intended to mean that the value of leisure is an opportunity cost. That is if I could, I would give 8 units of value to have the day off, maybe amble around the town square, play a theology professor on Wikipedia etc. Of course, time is a perishable item that can never come back. Of course, if I could now buy something I am willing to spend more than 8 units of value, let's say in this hypotetical society a scooter costs 10 units of value, I would rather have that than the day off. I used rapidly declining earnings simply for simplicity's sake. Of course, I could in writing this problem denote my costs for work and my revenue that I will earn. Entepreneurs usually have to deal with declining marginal revenue on a much more apparent basis than laborers who are paid a constant rate until their marginal profit produced equals their wage. The concepts that I used to solve this problem, aside from the Coase theorem itself, were [[Nash equilibrium]], [[game theory]], and [[Pareto efficiency]].
::::: I have no objection to this problem being used in the economics course. The main thing that I think would be prudent is if you could peer review this problem and ensure that both the question is sound and understandable for your audience of high school students and the solution is correctly solved before the semester starts. I have solved out the problem, but I will hold off on posting it for a little bit so you can take into account my clarification. Specifically, leisure is a non-monetary commodity that cannot be bought, but has a value to each person. There is no requirement or opportunity to purchase leisure time. I can also create some Coase theorem problems that present a scenario of pollution caused to a third party with a fourth party perhaps existing who can mitigate the pollution most efficiently. Hopefully, all of this helps. Let me know if you have any questions. [[User:Brown25|Brown25]] 18:20, 15 August 2009 (EDT)