not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change. Right! In the absence of the utility being legally​ liable, the victims of pollution have an incentive to pay the utility to reduce pollution up to the point where the marginal benefit of the last ton of reduction is equal to the marginal cost. If the utility is legally​ liable, it has an incentive to pay the victims of pollution to allow it to pollute up to the same point.​ Therefore, property rights​ (and legal​ liability) do not matter for the amount of pollution reduction because such rights​ (and such​ liability) do not change the marginal benefits and the marginal costs of pollution reduction.