[PDF] The Choice Between Property Rules And Liability Rules Revisited eBook

Author : Daphna Lewinsohn-Zamir
Publisher :
Page : 0 pages
File Size : 27,35 MB
Release : 2015
Category :
ISBN :

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One of the most fundamental issues every legal system must address is the form of protection that should be given to legal entitlements. Calabresi & Melamed offered a simple, elegant criterion for choosing between property rules and liability rules, namely transaction costs. Property rules should be used when transaction costs are low and the parties can bargain with one another. Liability rules are best applied when transaction costs are high and bargaining is impossible or difficult. Recently, however, Ayres & Talley, Kaplow & Shavell, and others have questioned this conventional wisdom. In particular, they claim that liability rules may be superior to property rules even when transaction costs are low. The Article criticizes the new arguments in favor of liability rules, and vindicates the superiority of property rules in low-transaction-cost situations. It draws on insights from behavioral and psychological studies of bargaining behavior to support the use of property rules when bargaining is possible. In doing so, this Article differs from previous critiques of liability rules. In particular, analysis of Ultimatum Game bargaining experiments reveals that negotiation under property rules may be much more successful than scholars tend to assume. Property rules encourage parties to fairly share the gains from the trade and reduce the magnitude of entitlement owners' endowment effect. In contrast, investigation of Dictator Game experiments shows that bargaining in the shadow of liability rules is significantly more problematic than most writers acknowledge. Liability rules induce egoistic behavior, intensify owners' endowment effect and discourage agreement between the parties. Consequently, the negotiation process is prone to end in failure. The subsequent need to resort to coercion powers becomes a self-fulfilling prophecy with negative results in terms of both efficiency and private autonomy. The Article explores the various normative implications of this argument.

Author : Stephanie M. Stern
Publisher : NYU Press
Page : 303 pages
File Size : 27,96 MB
Release : 2020-02-25
Category : Psychology
ISBN : 1479878898

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Considers how research in psychology offers new perspectives on property law, and suggests avenues of reform Property law governs the acquisition, use and transfer of resources. It resolves competing claims to property, provides legal rules for transactions, affords protection to property from interference by the state, and determines remedies for injury to property rights. In seeking to accomplish these goals, the law of property is concerned with human cognition and behavior. How do we allocate property, both initially and over time, and what factors determine the perceived fairness of those distributions? What social and psychological forces underlie determinations that certain uses of property are reasonable? What remedies do property owners prefer? The Psychology of Property Law explains how assumptions about human judgement, decision-making and behavior have shaped different property rules and examines to what extent these assumptions are supported by the research. Employing key findings from psychology, the book considers whether property law’s goals could be achieved more successfully with different rules. In addition, the book highlights property laws and conflicts that offer productive areas for further behaviorally-informed research. The book critically addresses several topics from property law for which psychology has a great deal to contribute. These include ownership and possession, legal protections for residential and personal property, takings of property by the state, redistribution through property law, real estate transactions, discrimination in housing and land use, and remedies for injury to property.

Author : Eyal Zamir
Publisher : Oxford Handbooks
Page : 841 pages
File Size : 12,33 MB
Release : 2014
Category : Business & Economics
ISBN : 0199945470

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'The Oxford Handbook of Behavioral Economics and Law' brings together leading scholars of law, psychology, and economics to provide an up-to-date and comprehensive analysis of this field of research, including its strengths and limitations as well as a forecast of its future development. Its twenty-nine chapters are organized into four parts.

Author : Alan Devlin
Publisher : Routledge
Page : 398 pages
File Size : 18,23 MB
Release : 2014-10-17
Category : Law
ISBN : 1317616480

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This textbook places the relationship between law and economics in its international context, explaining the fundamentals of this increasingly important area of teaching and research in an accessible and straightforward manner. In presenting the subject, Alan Devlin draws on the neoclassical tradition of economic analysis of law while also showcasing cutting- edge developments, such as the rise of behavioural economic theories of law. Key features of this innovative book include: case law, directives, regulations, and statistics from EU, UK, and US jurisdictions are presented clearly and contextualised for law students, showing how law and economics theory can be understood in practice; succinct end- of-chapter summaries highlight the essential points in each chapter to focus student learning; further reading is provided at the end of each chapter to guide independent research. Making use of tables and diagrams throughout to facilitate understanding, this text provides a comprehensive overview of law-and-economics that is ideal for those new to the subject and for use as a course text for law-and-economics modules.

Author : Yun-chien Chang
Publisher :
Page : 45 pages
File Size : 46,78 MB
Release : 2014
Category :
ISBN :

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Since Calabresi & Melamed's seminal article on property rules and liability rules, numerous law and economic articles have debated the efficiency of these two rules. Many of the follow-up articles contend that Calabresi & Melamed are wrong in arguing that property rules are more efficient when transaction costs are low. Put-option liability rules and other sub-types of liability rules have been developed, and they are claimed to be superior to property rules. As several property scholars have pointed out, however, the shadow examples in this so-called optional law literature are not property laws, and they have contended that property rules should be the default in property law. Built on this line of literature, this article argues that Calabresi & Melamed are actually correct -- property rules are indeed more efficient than liability rules in property law in a low transaction-cost setting, because property rules better harness private information. In addition, this article develops a theory as to when call-option liability rules might be more efficient. This article also argues that Rules 3 and 4 are either unnecessary concepts or inefficient entitlement protection rules in the area of property, and that put-option liability rules are less efficient than call-option liability rules in property, because calls utilize private information better than puts. Finally, this article contends that liability rules are intrinsically different from financial options and legal options; thus, the option analogy is better avoided.

Author : Daniel Krauspenhaar
Publisher : Springer
Page : 251 pages
File Size : 40,80 MB
Release : 2014-10-06
Category : Law
ISBN : 3642409008

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The primary purpose of a patent law system should be to enhance economic efficiency, in particular by providing incentives for making inventions. The conventional wisdom is that patents should therefore be strictly exclusive rights. Moreover, in practice patent owners are almost never forced to give up their right to exclude others and receive only a certain amount of remuneration with, for instance, compulsory licensing. Other economically interesting patent-law objectives, however, include the transfer and dissemination of knowledge. Mechanisms exist by which the patent owner decides if he or she would prefer exclusive or non-exclusive rights, for instance the opportunity to declare the willingness to license and create patent pools. But it is questionable whether these mechanisms are sufficient and efficient enough in view of the existence of patent trolls and other problems. This work challenges the conventional wisdom to a certain extent and makes proposals for improvements.

Author : Yun-chien Chang
Publisher : Cambridge University Press
Page : 313 pages
File Size : 35,71 MB
Release : 2019-12-19
Category : Business & Economics
ISBN : 110847487X

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Leading empirical legal scholars from around the world explore whether and under what conditions the judicial process is efficient.

Author : Yun-chien Chang
Publisher : Cambridge University Press
Page : 453 pages
File Size : 21,65 MB
Release : 2023-06
Category : Law
ISBN : 1009236598

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The book builds on hand-coded data on nearly 300 dimensions on the substance of property law in 156 jurisdictions globally and applies plain-language economic analysis to real-world legal schemes. Cutting-edge machine learning algorithms and statistical analysis are applied. Detailed citations to laws in each jurisdiction are useful to lawyers.