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Full-Text Articles in Law
Nuisance, Keith N. Hylton
Nuisance, Keith N. Hylton
Faculty Scholarship
This entry sets out the law and the economic theory of nuisance. Nuisance law serves a regulatory function: it induces actors to choose the socially preferred level of an activity by imposing liability when the externalized costs of the activity are substantially greater than the externalized benefits or not reciprocal to other background external costs. Proximate cause doctrine plays a role in supplementing nuisance law.
The Fair Use Doctrine: Markets, Market Failure And Rights Of Use, Wendy J. Gordon
The Fair Use Doctrine: Markets, Market Failure And Rights Of Use, Wendy J. Gordon
Faculty Scholarship
Markets are most acceptable when they serve efficiency and other goals. It is only under transaction-costless conditions of perfect knowledge, flawless and cost-free enforcement, full monetization, and instantaneous ability to organize and negotiate, that markets are guaranteed to generate efficient outcomes. And even then, markets could fall short as social tools, because goals other than allocative efficiency may fail to be met.