Jay spends some time in the sauna au naturale, but Mitchell doesn’t appreciate the eyefull. Their awkward exchanges have been impacting other guests at the spa as well. Jay clearly gets private benefits from entering the sauna the way he has, and he doesn’t seem to care too much for the external costs he has imposed on his son. The Coase Theorem would suggest that the two should be able to come to some agreement.
See more: Coase theorem, externalities, negative externalities, private benefits, social costs
