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Full-Text Articles in Law
Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic Management, Jonathan R. Nash
Economic Efficiency Versus Public Choice: The Case Of Property Rights In Road Traffic Management, Jonathan R. Nash
Faculty Articles
This Article argues, using the case of responses to traffic congestion, that public choice theory provides a greater explanation for the emergence of property rights than does economic efficiency. The traditional solution to traffic congestion is to provide new roadway capacity, but that is not an efficient response in that it does not lead to internalization of costs and may actually exacerbate congestion problems by inducing travel that would not have taken place but for the new construction. By contrast, congestion charges, which impose tolls designed to internalize the costs of driving, offer an efficient way to address the problem …
Controlling Above-Cost Predation: An Alternative To Weyerhaeuser And Brooke Group, Jack Kirkwood
Controlling Above-Cost Predation: An Alternative To Weyerhaeuser And Brooke Group, Jack Kirkwood
Faculty Articles
This article proposes a new legal standard for predatory pricing, predatory bidding, and possibly other forms of exclusionary pricing - the welfare/economic sense standard. Under this standard, the plaintiff would have to show that the challenged conduct was not only profitable to the defendant but harmful to the long-run welfare of consumers or suppliers. Moreover, even if the plaintiff made that showing, the defendant would escape liability if it proved that its conduct made economic sense without regard to its anticompetitive effects. The article argues that the new standard is superior to the below-cost/recoupment standard of Brooke Group and Weyerhaeuser …