Law and Economics
Basic Formulation
Conditions and Assumptions
Illustrative Examples
Zero Transaction Costs
Positive Transaction Costs
Barriers to Bargaining
Allocation of Resources
Independence from Initial Rights Assignment
Efficient Outcomes Through Bargaining
Legal Entitlements and Outcomes
Assignment of Rights
Initial Allocation and Efficiency
Facilitating Bargaining
Legal Rules to Reduce Transaction Costs
Real-World Applicability
Distributional Concerns
Information Asymmetries
Power Asymmetries
Wealth Effects
Previous
2. Foundational Economic Concepts
Go to top
Next
4. The Economics of Property Law