You should check out Coase Theorem:
> A candy maker had had the same property for over 60 years when a doctor moved next door. After eight years passed without incident between them, the the doctor built a consulting room right against the confectioner’s kitchen. The doctor then found that the noise from the confectioner’s equipment interfered with the doctor’s ability to work, and in particular to hear with a stethoscope. The doctor filed suit to force the confectioner to stop using his equipment. The court recognized that the confectioner might suffer some hardship – thus admitting to the reciprocal nature of harm that Coase would later recognize – but it argued that to avoid even greater (unspecified) individual hardship and inhibiting land development for residential use, the confectioner must stop (9.)
> Coase proposed considering how the parties might settle the dispute in a market transaction once the court made its findings; for space reasons I will present a simplified version of Coase’s argument. Though the doctor had won, in a market settlement he would be willing to allow the machinery to continue to operate were the confectioner to pay the doctor a sum that was greater than the doctor’s loss of income from having to either move or install sound abatement material. Conversely, had the confectioner won, in a market settlement he would have been willing to accept payment from the doctor to stop using the noisy machinery if the amount were greater than the confectioner’s costs to move the equipment or install sound abatement material.
https://michaelbrennen.com/2014/04/12/externalities-2-ronald...