Problem
Marple and Wolfe are two neighboring dormitories. Wolfe is considering giving a party with a very loud band, which will have a negative externality in the form of a sort of sound pollution for Marple. Imagine that the school administration decides that any dormitory has the right to prevent another dorm from hiring a band. If the band creates a negative externality, how might the residents of Wolfe apply the lessons of Coase's theorem to hire the band they want? Now imagine that the school administration decides that no dormitory can prevent another dorm from hiring a band, no matter how loud. If the band provides a negative externality, how might the residents of Marple apply the lessons of Coase's theorem to reduce the amount of time they have to listen to the band? How would your answer change if the band provided a positive externality?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.