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There are a variety of ways of reducing the damage, such as building a fence, growing less corn or keeping fewer cattle, each of which is costly. Thus the rancher and the farmer could bargain with each other to achieve an equitable outcome or the law could intervene and assign liability for the damages. If the latter option is taken, there are two rules which the law could adopt: Firstly, the farmer is responsible for keeping the cattle off his property, and he must pay for the damages when they get in. Secondly, the rancher is responsible for keeping the cattle on her property and so she must pay for the damage when they get out...
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