Open Access. Powered by Scholars. Published by Universities.®
- Publication Type
Articles 1 - 3 of 3
Full-Text Articles in Law
Collapsing Illusions: Standards For Setting Efficient Contract And Other Defaults, Steven J. Burton
Collapsing Illusions: Standards For Setting Efficient Contract And Other Defaults, Steven J. Burton
Indiana Law Journal
In this Essay, Professor Burton analyzes and evaluates four commonly used standards for setting efficient default rules and standards. Based on two theoretical insights, he shows that three of them collapse upon analysis into the fourth, a Coasian standard that turns out to be a dead end. The theoretical upshot is that the Coase Theorem often is a good reason to use defaults rather than mandatory rules or standards. But neither the theorem nor reference to a transaction-costless world sustains particular defaults. To set an efficient default, the law should guide courts toward supplying terms that parties should have adopted …
The Politics Of The Coase Theorem And Its Relationship To Modern Legal Thought, Donald H. Gjerdingen
The Politics Of The Coase Theorem And Its Relationship To Modern Legal Thought, Donald H. Gjerdingen
Articles by Maurer Faculty
No abstract provided.
The Coase Theorem And The Psychology Of Common-Law Thought, Donald H. Gjerdingen
The Coase Theorem And The Psychology Of Common-Law Thought, Donald H. Gjerdingen
Articles by Maurer Faculty
The Coase Theorem is a simple proposition-in the absence of transaction costs, a Pareto optimal result will occur regardless of the initial placement of legal liability. Despite this apparent simplicity, however, Coase's economic parable has provoked intense debate in the legal community. Why does the theorem grate on the hardened intuitions of so many lawyers? The thesis of this Article is that a connection exists between the adoption or rejection of a given school of legal thought and the use of certain psychological constructs. Specifically, this Article argues that the constructs underlying the Coase Theorem are incompatible with those underlying …