Category Archives: Law and Economics

Shi-Ling Hsu, ‘Cooperation and Turnover in Law Faculties: A Game-Theoretic Model and Empirical Study’

Abstract A standard account of group cooperation would predict that group stability would bring about greater cooperation, because repeat-play games would allow for sanctions and rewards. In an academic unit such as a department or a law faculty, one might thus expect that faculty stability would bring about greater cooperation. However, academic units are not […]

Victor Goldberg, ‘The Lost Volume Seller In English Law’

Abstract If a buyer breaches a contract but the market price has remained unchanged, English courts and the treatises have treated the seller as a ‘lost volume seller’. The seller, it is argued, could have had two sales, not one, so it lost the profit on the second sale. This paper recognizes that the buyer […]

Florian and Stremitzer, ‘Moral Institutions of Promise Keeping’

Abstract Promises are a pervasive and important feature of real-world economic exchange situations. We investigate lay peoples’ intuition of promise keeping. We study the effect of mutual promises, the dynamic of promising and performance over time, the effect of continuous as opposed to binary performance decisions, the effect of income, and the role the receipt […]

Yonathan Arbel, ‘Reputation Failure: Market Discipline and Its Limits’

Abstract  Free-market advocates seek to repeal broad swaths of tort, contract, and consumer law, trusting reputation to provide effective market-discipline. Their core belief is that reputation assures honest dealings because a seller reputed to sell inferior goods will lose business. Realizing that, the rational seller will behave honestly in order to maximize profits, thus obviating […]

Hans‐W Micklitz, ‘The Politics of Behavioural Economics of Law’

Abstract Hans-W Micklitz searches for the politics of behavioural economics of law. It implies a need to place behavioural law and economics into context – historically, politically, philosophically, theoretically and methodologically. The overall argument is that it is economic efficiency that stands predominantly behind behavioural law and economics, insinuates a value change away from the […]

Catherine Sharkey, ‘In Search of the Cheapest Cost Avoider: Another View of the Economic Loss Rule’

Abstract The economic loss rule in tort engages two fundamental theoretical questions: (1) which interests should tort law protect; and, more pointedly, (2) how should we think about claims that arise along the boundary line between tort and contract? This Article advances two claims that aim to clarify this controversial, often misunderstood, doctrine. First, it […]

Peter Lee, ‘Retheorizing the Impact of Intellectual Property Rights on Industry Structure’

Abstract Technological and creative industries are critical to economic and social welfare, and the forces that shape such industries are important subjects of legal and policy examination. These industries depend on patents and copyrights, and scholars have long debated whether exclusive rights promote industry consolidation (through shoring up barriers to entry) or fragmentation (by promoting […]

Andrzej Rapaczynski, ‘Economic Individualism and Preference Formation’

Abstract This note examines some issues involved in an attempt to go beyond the assumption, long-made by most economists, that people’s preferences are simply to be treated as ‘given’ and that the principle of consumer sovereignty entails a refusal to consider some (or some people’s) revealed preferences as more authoritative than others. The most important […]

Nathan Atkinson, ‘Designing Remedies to Compensate Plaintiffs for Unobservable Harms’

Abstract Despite the vast sums transferred through the legal system, the foundations of the procedures used to compensate plaintiffs for unobservable losses remain unclear. Standard remedies can compensate plaintiffs for unknown harms, but it is expensive to do so. Damage awards will generally undercompensate or overcompensate a plaintiff whose true harm is unknown, while equitable […]

Colangelo and Torti, ‘Copyright, Online News Publishing and Aggregators: A Law and Economics Analysis of the EU Reform’

Abstract On 12 September 2018 the European Parliament approved the new version of the proposal for a Directive on Copyright in the Digital Single Market elaborated by the European Commission in 2016. In order to address problems in protecting content and improve the bargaining position of press publishers against information society service providers, the European […]