经济法英文课件教材教学课件.pptVIP

Econ 522Economics of Law; Established properties of an efficient property law system Private goods are privately owned, public goods are not Owners have maximum liberty over how they use their property Injunctive relief used when transaction costs are low,damages used when transaction costs high We tried “testing Coase” through an experiment Can UW undergrads reallocate poker chips efficiently? (Cost me $124);Take 1: Full Information (values on nametags);Take 2: Private Information (values hidden);Take 3: Uncertainty Take 4: Adverse Selection;Coase works pretty well, except under asymmetric info Full info: 93% of gains achieved Private info: 75% Uncertainty: 100% Asymmetric info: 0% Comparing “uncertainty” to “asymmetric info”… Seller’s value was 2 X die roll, buyer’s value was 3 X die roll If nobody knows die roll, no problem – they can trade based on the expected value But if seller knows die roll, problem In strategic settings, information can have negative value – the seller could be worse off for having information!; (old exam question, question by Alex Tabarrok at Marginal Revolution blog) In Virginia, the common law has long held that if a neighbor’s tree encroaches on your yard you may cut the branches as they cross the property line, but any damage the tree does to your property is your problem. Your neighbor can even sue if your pruning kills the tree. In 2007, the Virginia Supreme Court overruled this 70-year-old precedent, making it your neighbor’s duty to prune or cut down the tree if it is a “nuisance.” Which is better: the new rule or the old? What would the Coase Theorem say about the two rules?;Applications ofProperty Law;Patent: legal monopoly Other firms prohibited from imitating Firm 1’s discovery Subgame perfect equilibrium: firm 2 does not imitate; firm 1 innovates, drug gets developed;Comparing the two outcomes;Without patents, inefficient outcome: drug not developed With patents, different inefficiency: monopoly! Once the drug has