Final answer:
Right of way refers to the legal entitlement to use a particular route or area, which applies to transportation and property rights scenarios. Property rights determine responsibilities and obligations, such as who is liable for damages or preventative measures in cases of potential harm. Through defining rights, individuals and entities manage risks, thereby avoiding endless disputes.
Step-by-step explanation:
Right of way refers to the legal right, established by usage or grant, to pass along a specific route through grounds or property belonging to another. It is a concept that addresses who has the legal right to use a certain area for travel, and it can also extend to certain privileges over property owned by someone else.
In the context provided, rights refer to a bundle of entitlements or permissions assigned to a group or individual. These rights can indicate who has priority in specific interactions, such as a traffic scenario where one vehicle has the right of way over another, thereby requiring others to yield. In broader terms of law and property, as Coase described, property rights are crucial; they define the legal rights of ownership which others must not infringe without compensation.
For instance, we question whether a farmer has a property right not to have his field burned or if a railroad has a property right to run its trains on its own tracks. Well-defined property rights can prevent endless disputes and lead to proactive solutions in managing risk and responsibilities. Essentially, property rights determine whether individuals or entities must bear the cost of certain actions, such as reducing the risk of fire from a passing train's sparks.