2.4 — Relief: Property Rules vs. Liability Rules — Class Content
Contents
Tuesday, March 2, 2021
Overview
If we follow the Normative Coase & Normative Hobbes “theorems” for achieving an efficient property law system, what would it look like? We begin by answering one of the 4 questions a property system must solve: what remedies are available when property rights are violated? We read another very famous paper by Calabresi and Melamed that outline when it is efficient to use a particular remedy, given the transaction and information costs of the situation (as reflected by the normative Coase & Hobbes approach).
Readings
Readings
- Calabresi and Melamed, 1972, “Property Rules, Liability Rules, and Inalienability: One View of the Cathedral”
- Ch. 4 in Cooter and Ulen, 2012, Law & Economics
- Ch. 5 in Friedman, 2000, Law’s Order
Optional but Useful Reading
- Farnsworth, 1999, Do Parties to Nuisance Cases Bargain after Judgment? A Glimpse inside the Cathedral"
- Roth, 2007, “Repugnance as a Constraint on Markets”
Slides
