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Full-Text Articles in Law
Solomon's Knot: How Law Can End The Poverty Of Nations, Robert D. Cooter, Hans-Bernd Schaefer
Solomon's Knot: How Law Can End The Poverty Of Nations, Robert D. Cooter, Hans-Bernd Schaefer
Robert Cooter
Sustained growth depends on innovation, whether it’s cutting-edge software from Silicon Valley, an improved assembly line in Sichuan, or a new export market for Swaziland’s leather. Developing a new idea requires money, which poses a problem of trust. The innovator must trust the investor with his idea and the investor must trust the innovator with her money. Robert Cooter and Hans-Bernd Schäfer call this problem the “double trust dilemma of development.” How nations confront it determines whether their economies grow or stagnate. Nowhere is this problem more acute than in poorer nations. Nations are relatively poor in the modern world …
The Secret Of Growth Is Financing Secrets: Corporate Law And Growth Economics, Robert D. Cooter, Hans Bernd Schaefer
The Secret Of Growth Is Financing Secrets: Corporate Law And Growth Economics, Robert D. Cooter, Hans Bernd Schaefer
Robert Cooter
Innovative businesses unite capital and new ideas, which requires overcoming the double trust dilemma -- investors fear losing their wealth and innovators fear losing their ideas. To overcome this dilemma, 17th century spice traders invented the joint stock company with an essential feature of modern corporations: entitlements to marketable shares of future profits. Using the corporate form, innovative business ventures can often be organized so that innovators expect to earn more from their share of profits than from stealing the investors’ money, and investors expect to earn more by preserving the company’s secrets than disseminating them. The corporation thus provides …
Maturing Into Normal Science: The Effect Of Empirical Legal Studies On Law And Economics, Robert D. Cooter
Maturing Into Normal Science: The Effect Of Empirical Legal Studies On Law And Economics, Robert D. Cooter
Robert Cooter
Empirical legal studies (ELS), according to this Article, is the maturation of law and economics (L&E) into the long-awaited science of law. The main sociological consequence will be the gradual spread of ELS and L&E into the nonelite law schools. This process can only go so far because science concerns law’s effects, whereas teaching at nonelite law schools concerns law’s content. To learn law’s content, pass the bar exam, and practice law, students need an intuitive understanding of law’s effects. To move to the center of law teaching and practice, the next task of ELS is to make the correct …
Clearings And Thickets, Robert D. Cooter, Aaron Edlin
Clearings And Thickets, Robert D. Cooter, Aaron Edlin
Robert Cooter
Abstract: Intellectual property rights create temporary monopoly power for innovators. Monopoly pricing transfers wealth to the innovator from the innovations buyers -- consumers, producers, and other innovators. For innovations mostly used in consumption and production, the transfer from consumers and producers to innovators increases the profitability of innovating and causes more of it. The welfare gains from faster growth quickly overtake the temporary losses from monopoly’s dead weight loss. Thus intellectual property rights should be strong for innovations mostly used by consumers and producers. In contrast, for innovations mostly used by other innovators, the transfer of wealth from one innovator …
Chapter 1: The Importance Of Law In Promoting Innovation And Growth, Robert D. Cooter, Aaron Edlin, Robert Litan, George Priest
Chapter 1: The Importance Of Law In Promoting Innovation And Growth, Robert D. Cooter, Aaron Edlin, Robert Litan, George Priest
Robert Cooter
No abstract provided.