Socially Benevolent Planner: If Dick's benefits of having the dog outweigh Jane's costs of having the dog barking, then it is efficient to keep the dog. If the costs outweigh the beneifts, then it makes sense to get rid of the dog Coase Theorem: If Jane is willing to spend $800 to get rid of the dog and Dick's dog benefits are $500, then Jane can offer Dick $600 to get rid of the dog and he will accept, leaving both parties better off. However, there is a possibility that Dick values his benefits from his dog at $1000 and Jane will only pay $800 so the dog will stay.