‘Are Prices Just?’

Robert C Hockett and Roy Kreitner, Just Prices, 27 Cornell Journal of Law and Public Policy (forthcoming 2018), available at SSRN. Our economic system, and particularly our laws of property and contracts, assumes that prices arise naturally from the workings of a neutral market. Rational actors with complete information operate independently, and the laws of supply and demand establish a unique price for a good or a service. The market price established in this manner reflects the value of that good or service. If these assumptions are correct, then one may conclude that the price of any item is ‘just’ in the sense that it reflects the value the relevant market places on it and conveys this information to those operating within that market … (more)

[Gregory M Stein, JOTWELL, 5 June]

First posted 2018-06-05 12:15:37

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