What Belongs in the Bundle? Consider the case of land Which rights belong together Which rights are clearly more valuable to someone else? Which are valuable to two or more people? In which case you might get the initial assignment wrong Which raises the question of how easily can it be fixed? .That gets us back to property vs liability,transaction costs,and all that stuff Or you might find some way of dividing the right to give each person the part he wants You have the right to dig on your property,except that I have the right of lateral support Or of dividing it so that only the part valuable to both must be transacted over Coal rights in Pennsylvania Only the support right need bargainingover What Belongs in the Bundle? • Consider the case of land • Which rights belong together • Which rights are clearly more valuable to someone else? • Which are valuable to two or more people? • In which case you might get the initial assignment wrong • Which raises the question of how easily can it be fixed? • That gets us back to property vs liability, transaction costs, and all that stuff • Or you might find some way of dividing the right to give each person the part he wants • You have the right to dig on your property, except that • I have the right of lateral support • Or of dividing it so that only the part valuable to both must be transacted over • Coal rights in Pennsylvania • Only the support right need bargaining over