Law Commons^™

The Cathedral Rules As The Wto’S Remedy, Ashley H. Song Ms.

Ashley Song

Coase’s assumption of zero transaction cost is not realistic in the WTO; it bears substantive amount of transaction costs. Unlike Coase, Calabresi and Melamed, in their article of “Property Rules, Liability Rules, and Inalienability: One View of the Cathedral,” endogenously admit that transaction cost exists and utilize it for the application of a property and liability rule. I would like to apply the property, liability, and inalienability rules to the WTO– mainly, to the wrongful acts of the WTO members– and which remedy according to which rule can be effectual or reach the welfare maximization in Pareto Optimal.