Kristelia García, Super-Statutory Contracting, Washington Law Review (forthcoming, 2020), available at SSRN. Economic activities often conflict: a rancher’s stray cattle may reduce the value of a neighboring farmer’s crops, or a tech company’s file-sharing app may reduce the value of music labels’ records. When conflicts arise, society needs to decide which party’s interest to protect, and whether to do so with a property right or a liability rule. The law and economics literature teaches that lawmakers should devise entitlements while taking into account post-allocation transaction costs, with the goal of ensuring that resources end up in the hands of parties who put them to their most productive use … (more)
[Dotan Oliar, JOTWELL, 14 May]
First posted 2020-05-14 18:25:30
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