Law and economics notes

If we wish to predict outcomes, willingness to pay is more relevant than utility. Which is relevant to how good a risk you are 3. So if the court knows that clover is cheaper than fires, farmers who have fires due to sparks will only be able to sue for what it would have cost them to switch to clover-that being the reasonable way of minimizing the damages.

Under Federal law and the law of many states, property used in certain crimes can be seized by the government, without proving that the owner was guilty of anything.

Application to product liability. So most of the cars actually purchased are lemons.

Journal of Law, Economics & Policy

Lots of articles which will be handed out in class; note that in some cases only part of the article is assigned. And might mean fining both parties to make both adjust-the auto accident case. He also pointed out some interesting linguistic features present in the contracts, letters, and receipts that he transcribed, translated and published as part of his thesis.

But the fact that the seller accepts your offer is evidence that he is selling a lemon. The solution proposed by Becker and Stigler was a bounty system, where the policeman receives as salary the fine paid by the convicted criminal.

An incentive to report the accident 2. Think about the difference between bargaining, which requires only low transaction costs, and strategic behavior--which depends, in part, on a breakdown in bargaining. Who is liable for damage done by exploding Coke bottles.

In other words, the alternative to both caveat emptor and caveat venditor is freedom of contract. He died September 11,at his home in Los Altos Hills, California, ten days before his rd birthday. An alternative approach, if we think the court can tell when offenses are efficient, is to special case them-to punish only the inefficient crimes.

If I don't get insured because the price the insurance company charges knowing that people who buy insurance are likely to be bad risks is more than the price I will pay knowing that I am a good risk that is a net loss. God is not available to run the society.

Patients correctly interpret a request for such a waiver as a signal of incompetence, and go to another doctor. And people buy insurance-- 1. In my view economics should, and generally does, avoid including strategic behavior in its analysis wherever possible.

Sue trespassers-but only for damage actually done.

Law and economics

Once they belong to the same firm, there is no longer an externality-the cost of pollution and the cost of pollution control are being paid by the same people. Economic analysis often uses more deductive reasoning a. 1. Introduction to Economics Lecture Notes 1. Economics Defined - Economics is the study of the allocation of SCARCE resources to meet unlimited human wants.

regulations or law designed to affect the accomplishment of specific economic goals. a. Steps in formulating policy: 2. View Notes - Law and Economics Notes from ECON at Auburn University.

Law and Economics • Unifying Theme of the Course • instead of looking for the unique and defining features of law, the%(2). View Notes - Law and Economics Notes from ECON at Auburn University. Law and Economics • Unifying Theme of the Course • instead of looking for the unique and defining features of law, the%(2).

What is the relation between economics defined in that way and economics more narrowly defined-what you find in the typical micro text?

VII. What is economic efficiency? In this document description about Relationship between Law and Economics, Law and economics, Positive and negative factors, Difference between law and Economics,Explanation.

Journal of Law, Economics & Policy The Journal of Law, Economics and Policy 's mission is to publish and distribute four annual, innovative, thought-provoking journals on law, economics and policy.

Founded inJLEP is a unique undertaking in that it is the first student-run journal of law and economics in legal academia.

Law and economics notes
Rated 4/5 based on 96 review
Law and Economics Lecture Notes: D. Friedman