A contentious issue is brewing between dog lovers and wetland lovers in Bozeman’

Question

A contentious issue is brewing between dog lovers and wetland lovers in Bozeman’s 100-Acre Park (also known as “The Dinosaur Park” located between Oak and Baxter). The issue goes something like this:

The park contains two manmade ponds, whose purpose was to fulfill a wetlands permit within the city limits. The Corps of Engineers was promised 1.3 acres of lake wetlands within the park. In 2008 the total wetland area within the park was 1.2 acres. In October 2010 total wetland acreage decreased to .76 acres.

The two stakeholders involved each express different claims as to why the total wetland acreage has decreased and advocate for different outcomes. The following table summarizes each stakeholder’s claims and demands on the city. Medium to hard

The parties involved

Wetland lovers

Dog lovers

The claim:

Wetland lovers claim that the loss of wetland acreage is the result of vegetation lost along the water’s edge primarily as a result of off leash dogs that are damaging the riparian area.

Dog lovers claim that there is no credible evidence to suggest that dogs swimming in the lake water are the cause of the wetland shrinkage.

The demands:

Wetland lovers, like Lynn Bacon (a biologist and wetland’s specialist for the County), are demanding that the 100-Acre Park be converted from an off leash dog walking park to a leash only Park with limited access for both humans and dogs to the trail around the lakes in order to allow the riparian vegetation to reestablish itself.

Dog lovers who use the Park’s facilities believe there aren’t enough off leash dog park areas left in town and that the Park should remain dog and human friendly. This should be done by leaving the park off leash and continuing to allow dogs to swim in the lake.

As the consultant hired by the Bozeman County Commissioners, it is your job to analyze the situation and make recommendations based on sound economic reasoning.

(a) First you must analyze the nature of the good at the center of the controversy: the public park. What type of good is the 100-Acre Park and how does the nature of the property rights associated with this good lead to its overuse? (3 pts)

(b) If Wetland lovers were to obtain ownership of the park, why might inefficient park regulations prevail? Assume the case in which transaction costs are high. (2 pts)(c)If transaction costs are low and the Wetland lovers have clear ownership of the Park, what solutions might fall out of the negotiation process between the two parties? Hint: Your discussion should include something about relative values in uses. Extra credit for a discussion of possible low cost workarounds. (4 points)

Are there low cost workarounds? What are they?

(d) Knowing that the local government owns the Park and that payments to the government by wetland lovers or dog lovers are prohibited by law because they are seen as bribes rather than market transactions, would you expect the efficient outcome to be reached? If not, what stands in the way of efficiency? (4 points)

The parties involved

Wetland lovers

Dog lovers

The claim:

Wetland lovers claim that the loss of wetland acreage is the result of vegetation lost along the water’s edge primarily as a result of off leash dogs that are damaging the riparian area.

Dog lovers claim that there is no credible evidence to suggest that dogs swimming in the lake water are the cause of the wetland shrinkage.

The demands:

Wetland lovers, like Lynn Bacon (a biologist and wetland’s specialist for the County), are demanding that the 100-Acre Park be converted from an off leash dog walking park to a leash only Park with limited access for both humans and dogs to the trail around the lakes in order to allow the riparian vegetation to reestablish itself.

Dog lovers who use the Park’s facilities believe there aren’t enough off leash dog park areas left in town and that the Park should remain dog and human friendly. This should be done by leaving the park off leash and continuing to allow dogs to swim in the lake.

Explanation / Answer

The 100-acre Public Park is a public good.

A public good is a product that one individual can consume without reducing its availability to another individual and from which no one is excluded. Economists refer to public goods as "non-rivalrous" and "non-excludable".

Public goods are not the private property of any one individual. These goods have common property rights, i.e., they are held as property of the government. Due to this nature, public parks are often overused as every person believes they have a right to use it in any manner they wish.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.