Contractual
arrangements
sometimes
fail.
The costs
of
bargaining
and
striking
an
agreement
may
be
very
high.
Some
parties
to
the agreement
may
seek
to
hold
out
for
a better
deal,
and
the agreement
may
collapse.
In other cases
is
simply
too
costly
to
contact
and
deal
with
all
the potential
beneficiaries
of
an
agreement.
A factory,
for instance,
might
find
it
impossible
to
negotiate
directly
with
each
affected
citizen
to
decrease
pollution.
parties