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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.
Rethinking The Theory Of Legal Rights, Jules S. Coleman, Jody S. Kraus
Rethinking The Theory Of Legal Rights, Jules S. Coleman, Jody S. Kraus
Faculty Scholarship
In the economic approach to law, legal rights are designed, in part, to overcome the conditions under which markets fail. In correcting for market failure, economic analysis endorses two rules for assigning legal rights. The first specifies the allocation of rights under conditions of rational cooperation, full information and zero transaction costs. Provided that exchange is available and that obstacles to exercising it are insignificant, rational cooperators will negotiate around inefficiencies. Under these conditions, legal rights are not assigned in order to establish optimal levels of resource deployment directly; rather, they establish well-defined entitlements or negotiation points which create a …