Taisu Zhang, ‘A Theory of Property and Sociopolitical Change’

Contemporary property theory highlights information costs as the most important determinant of exclusion rights and numerus clausus-type standardization: rising information costs lead to stronger exclusion rights and more standardization – that is, a reduction in the number of allowed property forms – whereas falling information costs have the opposite effect. What this paradigmatic model lacks, however, is a theory of how and why information costs change in the first place. By developing such a theory, this article demonstrates that the legal impact of information costs is systemically counterbalanced by concurrent changes in individual preference, and that preexisting predictions about the relationship between information costs, exclusion, and standardization are therefore partially wrong, and otherwise incomplete …

Zhang, Taisu, A Theory of Property and Sociopolitical Change (September 13, 2018).

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