Instructor: Professor John Garen
Fall 2002
Office: 335C Business & Economics
9:30-10:45 T, Th
Hours: 12:30 – 1:30 T, Th
BE 214
Phone: 257-3581
e-mail: jgaren@uky.edu
Website: http://gatton.uky.edu/Faculty/garen/index.html
Background
This course studies selected topics in the area of law and economics. While the field of law, and the economic analysis of it, is quite broad, we focus on the central areas of common law – property, contracts, and torts. We will discuss the economic effects of various laws and seek to discover legal rules that promote economic efficiency. Thus, the course has both positive and normative foci.
Text
The text for the course is:
Robert Cooter and Thomas Ulen, Law and Economics, Addison-Wesley, 3rd
edition, 2000.
Text website: http://www.cooter-ulen.com
Course Structure and Requirements
The first part of the course will focus on covering the material from the text. Classes will consist of lectures and class discussions. Student participation is expected. The latter part of the course will be devoted to student presentations of term papers. Grades will be determined by examinations and quizzes, class participation, a term paper, and a presentation of your paper to the class.
The percentage breakdown for each is:
Exam #1 (review material) 10%
Exam #2 (property)
15%
Exam #3 (contracts)
15%
Exam #4 (torts)
15%
Quizzes
5%
Class participation
10%
Term paper
15%
Class presentation
15%
Term papers are to be a description, discussion,
and an economic analysis of a case, case law, or a legal doctrine.
They should be related to the topics of the course. Topics must be
discussed with and approved by the instructor in advance. Ideas for
paper topics are listed below. Papers should be approximately 15
pages in length.
Course Outline and Readings
Dates Topics Readings
8/28 - 8/31 Introduction Ch. 1
9/1 – 9/7 An Introduction
to Law;
Chs. 2, 3
A Review of Economics
Tues., 9/10 Exam #1 --
9/11 - 9/14 Economics of Property Law Ch. 4
9/15 - 9/21 Economics of Property Law
cont’d; Chs. 4, 5
Topics in the Economics of
Property Law
9/22 – 9/28 Topics in the Economics
Ch. 5
of Property Law cont’d
9/29 – 10/2 Topics in the Economics
Ch. 5
of Property Law cont’d
Thurs., 10/3 Exam #2 --
10/6 – 10/12 An Economic Theory of Contract Ch. 6
10/13 – 10/19 An Economic Theory of Contract
Chs. 6, 7
cont’d; Topics in the Economics of
Contract Law
10/20 – 10/26 Topics in the Economics of
Ch. 7
Contract Law cont’d
10/27 – 10/30 Topics in the Economics of
Ch. 7
Contract Law cont’d
Thurs., 10/31 Exam #3 --
11/3 – 11/9 The Economics of Tort Law Ch. 8
11/10 - 11/16 The Economics of Tort Law
cont’d; Chs. 8, 9
Topics in the Economics of
Tort Law
11/17 – 11/23 Topics in the Economics
of
Ch. 9
Tort Law cont’d
Tues., 11/26 Exam #4 --
12/1 - 12/7 student presentations --
12/8 - 12/14 student
presentations
--
Possible Topics and Readings for Term Papers/Presentations
Below are a number of possible topics for papers/presentations. I also have listed a few readings for most topics. They are suggestive, not exhaustive. They come mostly from a quick search of two of the best known law and economic journals: Journal of Law and Economics and Journal of Legal Studies. Other sources of readings/topics are the textbook website (http://www.cooter-ulen.com), the law and economics section of the Social Sciences Research Network (http://www.SSRN.com), and http://lawecon.lp.findlaw.com/.
1. The development of property rights
Demsetz, Harold, “Toward a Theory of Property Rights,” American Economic
Review, 1967.
2. Property and contracts in developing and transition economies
Rapaczynski, Andrzej, “The Roles of the State and the Market in Establishing
Property Rights,” Journal of Economic Perspectives, 10(2), Spring 1996,
p. 87.
Bragunisky, Serguey, “Enforcement of Property Rights During the Russian Transition: Problems and Some Approaches to a New Liberal Solution,” Journal of Legal Studies, 28(2), June 1999, p. 515.
Gwartney, J.; Lawson, R.; and Block, W., Economic Freedom of the World: 1975 – 1995, The Fraser Institute, 1996.
Anderson, Terry and Lueck, Dean, “Land Tenure and Agricultural Productivity on Indian Reservations,” Journal of Law and Economics, 35(2), Oct. 1992, p. 427.
3. The efficiency of the common law
Rubin, Paul, “Why Is the Common Law Efficient?,” Journal of Legal Studies,”
6(1), January 1977, p. 51.
4. The role of the legal system in redistribution of income
Kaplow, Louis and Shavell, Steven, “Why the Legal System Is Less Efficient
Than the Income Tax in Redistributing Income,” Journal of Legal Studies,
23(2), June 1994, p. 667.
Also, see the exchange in the Journal of Legal Studies, June 2000.
5. Cell phones and rights to the electromagnetic spectrum
Coase, Ronald, “The Federal Communications Commission,” Journal of
Law and Economics, 2(2), Oct. 1959.
Journal of Law and Economics, 41(2), pt. 2, Oct. 1998 conference papers.
6. Satellites and rights to orbital space
Wihlborg, Clas and Wijkman, Per, “Outer Space Resources in Efficient
and Equitable Use: New Frontiers for Old Principles,” Journal of
Law and Economics, 24(1), April 1981, p. 23.
7. New technologies
Lichtman, Douglas, “Property Rights in Emerging Platform Technologies,”
Journal of Legal Studies, 29(2), June 2000, p. 615.
Macey, Jonathan and O’Hara, Maureen, “Regulating Exchanges and Alternative Trading Systems: A Law and Economics Perspective,” Journal of Legal Studies, 28(1), Jan. 1999, p. 17.
8. Intellectual property rights
Dam, Kenneth, “Some Economic Considerations in the Intellectual Property
Protection of Software,” Journal of Legal Studies, 24(2), June 1995, p.
321.
Dam, Kenneth, “The Economic Underpinnings of Patent Law,” Journal of Legal Studies, 23(1), Jan. 1994, p. 247.
Landes, William and Posner, Richard, “An Economic Analysis of Copyright Law,” Journal of Legal Studies, 18(2), June 1989, p. 325.
Landes, William and Posner, Richard, “Trademark Law: An Economic Perspective,” Journal of Law and Economics, 30(2), Oct. 1987, p. 265.
Carlton, Dennis and Gertner, Robert, “Intellectual Property, Antitrust, and Strategic Behavior,” NEBR Working Paper 8976, June 2002.
9. The common law and the environment
Yandle, Bruce, Common Sense and Common Law for the Environment, New
York: Rowan & Littlefield, 1997, Ch. 4.
10. Internalizing Externalities
Pashigian, B. Peter and Gould, Eric, “Internalizing Externalities:
The Pricing of Space in Shopping Malls,” Journal of Law andEconomics, 41(1),
April 1998, p. 115.
11. Fugitive Property
Dharmapala, Dhammika and Pitchford, Rohan, “An Economic Analysis of
‘Riding to Hounds’: Pierson V. Post Revisited,” Journal of Law, Economics,
and Organization, 18(1), April 2002, pp 39.
12. The development of rights to common property resources
13. AIDS drugs, patents, and pricing
14. Issues in contract law
Posner, Eric, “Contract Law in the Welfare State: A Defense of
the Unconscionability Doctrine, Usury Laws, and Related Limitations on
the Freedom to Contract,” Journal of Legal Studies, 24(2), June 1995, p.
283.
Rubin, Paul and Shedd, Peter, “Human Capital and Covenants Not to Compete,” Journal of Legal Studies, 10(1), Jan. 1981, p. 93.
15. Vaccines and liability law
Manning, Richard, “Changing Rules in Tort Law and the Market for Childhood
Vaccines,” Journal of Law and Economics, 37(1), April 1994, p. 247.
16. HMOs and liability.
Danzon, Patricia, “Tort Liability: A Minefield for Managed Care?,”
Journal of Legal Studies, 26(2), pt. 2, June 1997, p. 491.
17. No-fault insurance
Landes, Elisabeth, “Insurance, Liability, and Accidents: A Theoretical
and Empirical Investigation of the Effect of No-Fault Accidents,” Journal
of Law and Economics, 25(1), April 1982, p. 49.
18. Penalties for corporate crime
Fischel, Daniel and Sykes, Alan, “Corporate Crime,” Journal of Legal
Studies, 25(2), June 1996, p. 319.
Arlen, Jennifer, “The Potentially Perverse Effects of Corporate Criminal Liability,” Journal of Legal Studies, 23(2), June 1994, p. 832.
19. Compensation of plaintiff lawyers in tort lawsuits.
Hughes, James and Snyder, Edward, “Litigation and Settlement under
the English and American Rules: Theory and Evidence,” Journal of
Law and Economics, 38(1), April 1995, p. 225.
20. Aspects of corporate law, e.g., fiduciary duty, business judgment
rule
21. Aspect of the common law of employment, e.g., contract at-will,
employee liability
22. franchising law
23. smoking ordinances
24. water and ocean rights
25. “partial takings” and compensation
26. Disclosure in contracts
27. Issues in damages