Question

The underlying principle of the right-of-way rules is to ensure:

Answer 1

The primary goal of right-of-way rules is to ensure safety and efficiency in the flow of traffic. Traffic signals and the clear definition of property rights are examples of how the law manages these issues to prevent disputes and encourage responsible behavior. The concept of property rights helps in resolving conflicts by determining legal responsibilities.

Step-by-step explanation:

The underlying principle of the right-of-way rules is to ensure safety, predictability, and efficiency in traffic flow, whether for pedestrians or vehicles. For instance, traffic signals are implemented at intersections to manage the right-of-way, thereby enhancing safety by allowing pedestrians to cross at appropriate times and compelling vehicles to slow down in accordance with the speed limit. The allocation of property rights, as discussed by Coase, plays a similar role by defining legal responsibilities and obligations, which in turn enables parties to address conflicts—like preventing a railroad from causing fires in a farmer's field—through the most cost-effective means without endless disputes. Clear definition of property rights and liabilities helps in promoting fair and efficient outcomes in various scenarios, and when rights are well-defined, parties are incentivized to minimize risks and potential damages in an economically rational manner.