Bluegrass Music: A Voluntary Non-Hierarchical Resolution

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For Kristen and her friend, they can decide what music to play as they drive , travel from Flint to Atlanta by agreeing or effecting a voluntary non-hierarchical contract arrived at by voluntary bargaining among themselves, rather than a hierarchy or a third party imposition having a win-win attitude in mind.
If the two opt for a hierarchical resolution, the resolution process and the enforcement of the hierarchical decision will come with cost to the parties as well as the value of the time entail in the resolution process. It is equally important to note that in a case where playing bluegrass music is prohibited or otherwise during the trip, one party stands to lose. In other words, the cost of such resolution may go to one of them. While …show more content…

Furthermore, the hierarchical or the third party superior might have no real incentive to arrive at an efficient resolution. Thus his or her fiat might be motivated by other factions includes self or personal interest. There is also the possibility of imposing a fiat that is a ‘cope’ of a similar previous resolution rather than basing it solely on the current circumstance.
Kristen and her friend, for their voluntary non-hierarchical resolution can bargain their preference till a mutually agreeable contract is reached. Such contract will be a win-win one, making both friends better off. Kristen could pay her friend enough to keep her, making her give up her dislike for the music while she play it the entire trip. In same vain the friend could pay Kristen while she give up playing bluegrass music during the entire trip or portion of the trip. It could even be that during their bargaining the two friends can mutually agree without paying each other, which portion of the trip to play bluegrass and make it up with country music. This bargaining option seem much realistic and attainable among friend without much cost in respect of time. Whichever mutual agreement they reach, it should be voluntaristic …show more content…

In this case, where the parties are only two individuals, transaction cost is likely to be much less than if it had involved a lot of people or a process that involves an institution or a firm. Multiple contracts specifying the rights and responsibilities of various parties and contracts with verify of contingencies is likely to pose a higher cost. Thus, the likelihood is to leave some of these contingencies open with the possibility of such open contingencies occurring. In the case of Kristen and her friend, a simple and less contingent contract can be

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