Category Archives: Law and Economics
Murat Mungan, ‘Market Share Liability versus (Random) Strict Liability’
ABSTRACT I consider a model in which firms engage in Cournot competition in producing potentially harmful products. In addition to choosing output, they also choose safety precautions, which affects each product’s likelihood of harm to third parties. The liability regime in place thus potentially affects not only the safety precautions taken by the firms, but […]
Emanuel Towfigh, ‘An Economic Analysis of the Preventive Administration of Justice in Civil Law Countries’
ABSTRACT This Expert Opinion examines the preventive administration of justice in civil law countries from an economic point of view. In many countries with a civil law tradition, the role of the judiciary is not confined to solving conflicts after they occur. Instead, courts and other government actors assist individuals in structuring their legal relationships […]
Richard Markovits, ‘What’s the Matter With Welfare Economics?’
ABSTRACT Welfare Economics is the branch of economics that focuses on economic efficiency. Much Law & Economics research (1) analyzes the economic efficiency of particular common-law or constitutional-law holdings or decisions or of particular judicial interpretations and/or applications of statutes or administrative regulations and (2) makes explicit claims or proceeds on implicit assumptions about the […]
Anderlini and Teitelbaum, ‘The Law of General Average’
ABSTRACT Part of a ship’s cargo is jettisoned in order to save the vessel and the remaining cargo from imminent peril. How should the loss be shared among the cargo owners? The law of general average, an ancient principle of maritime law, prescribes that the owners share the loss proportionally according to the respective values […]
Emma Channing, ‘How Tokenization of Real-World Assets Will Facilitate Efficient Markets’
ABSTRACT Digital assets are a global phenomenon and real world asset (RWA) tokens are the future of capital markets. That future is already here, in terms of trillions of dollars of transactions per month. It is important to understand the terminology, market size, adoption and global approach to regulation. RWA tokenization is an important engine […]
Sally Zhu, ‘Collaborative Property: P2P sharing as property system’
ABSTRACT The increasing incidence of sharing privately owned resources gives rise to a practice where the value of property is based on the contribution of labour-service by individual users. I call this ‘collaborative property’, because it seeks to preserve the features of flexibility and efficiency associated with private property, while maintaining the distributed nature of […]
Cento Veljanovski, ‘Liberalism and the Regulatory State’
ABSTRACT This chapter explores FA Hayek’s view on the nature of law and regulation and their respective roles in a free society. Hayek saw the market as based on legal foundations which evolved to support its spontaneous order. However, he also ascribed a ‘considerable’ role to the state in regulating economic and social activity. To […]
Dimitris Xenos, ‘An Introduction to the Economic Analysis of Law as a Legal Theory in Improving Legal Argumentation and Judicial Decision-making for IP Law in Europe’
ABSTRACT The traditional forced consensus approach of judicial decision-making in Europe has so far precluded considerations of economic policy in the application and development of IP and patent law. The comparative paradigm of the economic analysis of law that is widely practiced in the US shows that this legal theory has upgraded legal argumentation and […]
Dari-Mattiacci and others, ‘Optimal (Non-)Disclosure Defaults’
ABSTRACT Sellers are generally required to disclose ‘negative’ information about hidden defects of the products they sell. By contrast, buyers are generally under no comparable duties to disclose ‘positive’ information about hidden qualities of the products they buy. The leading explanation for the law’s disparate treatment of buyers and sellers is that imposing disclosure duties […]
Cuntz, Fink and Stamm, ‘Artificial Intelligence and Intellectual Property: An Economic Perspective’
ABSTRACT The emergence of Artificial Intelligence (AI) has profound implications for intellectual property (IP) frameworks. While much of the discussion so far has focused on the legal implications, we focus on the economic dimension. We dissect AI’s role as both a facilitator and disruptor of innovation and creativity. Recalling economic principles and reviewing relevant literature, […]