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Encyclopedia of Law and Economics
Edited by Gerrit De Geest
The second, expanded edition of the acclaimed Encyclopedia represents a major
update of the most authoritative reference work in the field of law and economics and the nine print
volumes are now released online as a single integrated product.
The Encyclopedia provides balanced and comprehensive coverage of the major
domain in law and economics, including: criminal law, regulation, property law, contract law, tort
law, labor and employment law, antitrust law, procedural law, and the production of legal rules.
Each theme or volume is overseen by a leading scholar and each of the 166 entries is prepared by an
expert in the field, providing an in-depth and authoritative overview of the individual topic,
combined with an exhaustive bibliography, allowing users to access and filter the entire corpus of
literature in law and economics.
As with the print edition, the Encyclopedia is unique in serving both as an
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powerful search tools, facilitating the search for key terms across the entire
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Index: Index
[In: Volume 10, Thomas S. Ulen (ed) Methodologies of Law and Economics]
- abortion and crime 132
- academic fraud 269–71
- Acemoglu, Daron 131, 146
- adaptation 157, 213
- affective forecasting 212–14
- agent-based models 168–9
- Alchian, Armen 156, 162
- Allen, Douglas 130 (n. 3)
- Allen v. Wright 63–4
- allocative efficiency see efficiency
- Always Cooperate 167
- see also dynamic evolutionary game theory
- Always Defect 167
- see also dynamic evolutionary game theory
- American Law and Economics Association 3
- Anderson, Coe & King 8
- anti-positivist (Dworkin) 108
- Arminjon, Pierre 186
- Arrow Impossibility Theory see Impossibility Theorem
- Arrow, Kenneth J. 8, 48
- Arthur, W. Brian 163
- Articles of Confederation 50
- Ashenfelter, Orley 250
- Association of Data Processing Service Organizations, Inc. v. Camp 62
- autonomous agency 103
- Avoidance Rule in contract law 91
- Ayres, Ian 250 (n. 10)
- Azcárate, Gumersindo de 184
- “bad man” theory of law see Holmes
- Baird, Douglas G. 3
- Baker, C. Edwin 114–15
- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) 218
- bargaining costs see transaction costs Barnard, Dr. Christiaan 210 battles of the sexes 49
- see contract law as games
- Bazalgette, Joseph 249
- Becker, Gary 28, 229
- see also BPS model of crime
- Belleisles, Michael 269–70
- Ben-Shahar, Omri 219
- Benartzi, Shlomo 215
- Bentham, Jeremy 21
- Bergson, Abram 8
- Berkowitz, Daniel 137
- Berlin, Isaiah 116
- Bevilaqua, Clovis 184
- bicameralism 36
- bidirectional histories see legal history bilateral care model 24
- see also unilateral care model
- biology 14–15
- Birmingham, Robert 1 (n. 1)
- Black Death, legal responses to 130–31
- Blue Sky Laws 131
- Blumenthal, Jeremy 214
- Board of Regents v. Bakke 64
- Bogart, Dan 135–6
- Boomer v. Atlantic Cement 36
- BPS model of crime 28–9
- Bratman, Michael 106–7
- Brazilian Civil Code of 1916 184
- Brenner, Reuven 131
- Brickman, Philip 213
- Bronsteen, Jon 213
- Brown, John Prather 22, 23–4
- Bubb, Ryan 215
- Bubble Act of 1720 123
- Burt, Sir Cyril 269
- p. 278Calabresi and Melamed 112
- Calabresi, Guido 1 (n. 1), 251–2
- calendaring rules 46
- California gold rush 142–3
- cases as unreliable sources of historical information 125
- Chen, Keith 223
- chicken 49
- cholera 247–9
- Clark, Gregory 135
- classical utilitarianism 103
- Clay, Karen B. 137
- Coase, Ronald 1 (n. 1), 74, 124 Coase Theorem 2, 31–2, 52, 74–5, 78, 208
- causation 31
- Commerce Clause
- see also dormant Commerce Clause
- common law
- efficiency of 28
- common law, economic analysis of 76–85
- common law v. civil law 180–92
- critiques of legislative law and regulation as subject to capture 193
- questions about under-theorization 195
- supposed superiority of common law for growth 192–3
- see also economic growth and legal systems; legal origins; LLSV
- Commonwealth Edison v. Montana 58 (n. 11)
- community responsibility system 138–41
- English legislation to abolish collective responsibility 139
- comparative negligence 95 compensatory damages in breach of contract 82, 83
- Condorcet, Marquis de 49 (n. 6)
- Condorcet winner 48 (n. 5), 73, 94–5 (n.
11), 96
- see also Condorcet, Marquis de Constitution 50
- Consumer Finance Protection Bureau 220
- contract
- efficient breach of 3
- contract law as games 87–93
- battle of the sexes in battle over mailbox v. receipt rule 89
- see also mailbox rule; receipt rule
- contract law in ancient Rome 128
- contract law in Biblical Israel 128
- contracts, economic analysis of 79–83
- contractual choice of law 52–7
- contractual exit, costs of see contractual choice of law
- Cooter, Robert D. 26, 223
- court fees in England
- couverture 133–4
- crime and criminal law 28–30, 38–40
- BLE as a normal science 226–7
- economists’ criticisms 228–31
- evolutionary biology and BLE 234
- laboratory experiments v. market behavior 230–31
- lawyers’ criticisms of BLE 231–8
- cycling in default rules 92
- cycling in majority voting 48
- cycling in voting on the Supreme Court 67
- p. 279Damaska, Mirjan 187
- Darley, John 224–5
- David, René 186
- Davies v. Mann 24–5 (n. 13)
- day-in-the-life video 221
- De Soto, Hernando 30
- Deal, Robert 142
- death penalty deterrence 132
- decoupled liability rules 25 (n. 15)
- default rules 80, 208–12
- default rules in contract
- deformation professionelle 268
- Demsetz, Harold, on emergence of
- deterrent effect of capital punishment
- see empirical evidence in law
- Diener, Ed 212–13
- difference-in-difference regressions in legal history 132
- differential equations in evolutionary dynamics 160
- diffusion
- dimensionality 85–6, 99
- discontinuity-based empirical study 223
- discretion of English plaintiffs as to jurisdictional choice 132
- divination 244–5
- Donohue, John 132, 257
- dormant Commerce Clause 50, 51, 60 driving game 49
- duration neglect and criminal deterrence 225
- Dworkin, Ronald 108, 112, 114 dynamic evolutionary game theory 165–9
- easement 97–8
- implied easements as a coordination issue 97
- Easterbrook, Frank H. 8 (n. 12)
- economic analysis of law 21–30
- economic growth and legal systems 180–83
- Doing Business reports 196
- see also LLSV
- Edwards, Harry T. 4 (n. 8)
- efficiency
- efficiency of the common law see common law
- Ehrlich, Isaac 257
- Einstein, Albert 244
- Ellickson, Robert 12, 141–2
- criticisms of whaling study 142
- empirical evidence in law
- Engerman, Stanley 112–13
- Esmein, Adhémar 185
- evidence-based medicine 250
- evolutionary dynamics
- AIDS research as an example 154
- analysis of law 170–75
- p. 280cancer treatment as example 154
- defined 153
- drugs and pathogens 174
- evolution of the economic loss rule 176
- financial regulation 173
- NASDAQ price increments 171–2
- networks of risk in financial regulation 154
- payday lenders and regulators 174
- primer 156–60
- public health policies as example 154
- residential segregation as an example 155
- telecommunications as an example 155
- evolutionary economics 156
- export tax doctrine 57–61
- expressive law and economics 12–13
- feminist law and economics 13–14 filibuster 46
- financial literacy software and courses, effectiveness of 219–20
- First Fundamental Theorem of Welfare Economics 32 (n. 30), 120
- Fisher, R.A. 156
- fitness strategies 166, 167–8
- Fogel, Robert 112–13
- Fortescue, Sir John 179
- framing or framing effect 207–8
- in public health 207
- Fundação Getulio Vargas Law, School, São Paulo, Brazil 10
- game theory 1, 13, 49–51, 75–6
- see also prisoners’ dilemma; driving game; battle of the sexes; and chicken
- game theory in analysis of common law 85–99
- Garoupa, Nuno 10
- General Transaction Structure 34–8 Generous Tit-for-Tat (GTFT) game strategy 167
- see also dynamic evolutionary game theory
- Gilbert, Daniel 213
- Gilmore, Gary 65
- mother of 65
- Gilmore, Grant 3
- Gilmore v. Utah 65
- Ginsburg, Douglas 238 (n. 41)
- Ginsburg, Tom 12
- Glasson, Ernest 184
- Glorious Revolution of 1688, economic effects of 134–5
- Goldin, Jacob 215 (n. 11)
- Goldstein, Daniel 211
- Google 244
- Gordley, James 187
- Gordon, Robert 145–6
- Grady, Mark 25–6
- Granovetter, Mark 157
- graph theory 164–5
- Grief, Avner 138
- study of Maghribi traders and medieval trade 143
- Guinnane, Timothy 137
- Guzman, Andrew 11
- Hadfield, Gillian 13
- Hadley v. Baxendale 27 (n. 20)
- Haldane, Andrew 173
- Haldane, J.B.S. 156
- Hand, Judge Learned 23
- Hand test 23, 84
- see also U.S. v. Carroll Towing Co.
- Hansen, Zeynep K. 130 happiness 109
- set point of 213
- Harris, Ron 123, 137, 140
- hedonic treadmill 214
- Hegel on criminal deterrence 107–8
- heuristics 161
- Higgs boson 246–7 (n. 6)
- Hill, Thomas 104
- Holmes, Oliver Wendell 18–19
- Homestead Acts
- p. 281Hume, David 36
- Hurst, J. Willard 143
- hyperbolic discounting 216, 232 (n. 31)
- hysteresis see lock-in effect
- Illinois Department of Financial and Profession Regulation 218–19
- importance of empirical evidence in innovation 5 (n. 9)
- Impossibility Theorem 48
- inalienability 115
- incarceration and crime 224
- incentives 18
- incommensurability 115
- individual preferences
- endogenous, not exogenous 209
- information disclosure 219–20
- Institute for Genomic Biology,
- interest group theory 45–7
- defined 44
- see also public choice
- International Congress on Comparative Law (Paris 1900) 184–5
- Inter-University Consortium for Political and Social Research, University of Michigan 265
- Johnson, Eric 211
- Jones, Owen 15, 234
- judicial review 46
- jurisdictional competition 53–4
- justice and rights 110–12
- Kahneman, Daniel 204, 207, 225
- Kaldor-Hicks efficiency 74 (n. 2)
- see also efficiency
- Kant, Immanuel 115
- Kantian theory of human decision-making 104
- cf. to rational choice theory (economic theory of human decision-making)
- Kaplow, Louis 2 (n. 2), 14
- Kennedy, Anthony 67
- Kenny, Lawrence 132–3
- Klass, Gregory 3
- Klerman, Daniel 9, 131, 135, 137,
- 144–5
- Klick, Jon 234–6
- Kolber, Adam J. 15 (n. 28)
- Korobkin, Russell B. 212, 231
- Korsgaard, Christine 104–6
- Kötz, Hein 186, 187, 189
- Kronman, Anthony 116–17
- Krugman, Paul 163
- Kuhn, Thomas 226–7
- Kuran, Timur 141
- Lamoreaux, Naomi 137
- law and economics 30–40
- cf. economic analysis of law defined and distinguished from economic analysis of law 30
- law-and-society 12
- law as a dependent variable see legal history
- law as an independent variable see legal history
- law as a substitute for market exchange 33
- law merchant 143
- Lawless, Robert 258, 259, 271, 272, 274
- Lee, David 223
- legal centralism 141–2
- legal centrism 12–13
- legal families 183–8
- legal history
- legal origins 180–83
- LeRoy Fibre Co. v. Chicago, Milwaukee & St. Paul Ry. 26 (n. 18)
- Leuck, Dean 138
- Levitt, Steven 132, 230–31
- p. 282Levy-Ullman, Henri 185
- liability rules 32–4
- as legal (forced) exchange 33
- see also Calabresi and Melamed
- Libecap, Gary 130
- Lincoln, Abraham 246
- Lindgren, James 270
- List, John 229
- litigation and contracts see legal history
- Litvak, Katherine 123
- LLSV 137, 180–82, 196
- LLSV (Rafael La Porta, Florencio Lopez-de-Silanes, Andre Shleifer, and Robert Vishny) 10 (n. 14)
- Locke, John 110
- lock-in effect 10
- lost keys 273
- Lott, John 132–3
- Lujan v. Defenders of Wildlife 63 Lusardi, Annamaria 217
- Macey, Jonathan 131
- Madison, James 46
- Maghribi traders 143
- see also Grief, Avner
- Mahoney, Paul 123, 131, 135, 137
- mailbox rule in contract law 87
- cf. receipt rule
- default rule in US 88
- mandated disclosure 219–20
- mandatory rules 80
- many biases problem 237
- market analysis 1
- market imperfections 2
- fraud 204
- Markov Chain Monte Carlo Sampling (MCMC) 170
- Markovits, Dan 3
- Marshall, Alfred 156
- Marshall, John 58, 59
- May, Robert 173
- McAdams, Richard H. 13, 274
- McCrary, Justin 223
- McFadden, Daniel 225
- McGinnis, Megan 8
- M’Culloch v. Maryland 58
- medieval commercial law see law merchant
- Medina, Barak 215
- Merryman, John 187
- Miceli, Thomas 7
- Miller, Geoffrey 131
- Miller, Grant 133
- Millimet, David 229
- Mitchell, Gregory 234–6
- Mitchell, Olivia 217
- mixed strategy equilibrium 87
- cf. pure strategy equilibrium
- model of precaution 26–8
- Montana severance tax, cconstitutionality of 57–61
- see also Commonwealth Edison v. Montana
- multiple regression, criticisms of 266–9
- multiple selves 233
- myopia 216
- Nagel, Ernest 118
- Nagel, Thomas 112
- Nash equilibrium 73, 86
- Nash, John 86
- National Organ Transplantation Act of 1984 210
- Neal, Larry 124
- negligence 22–6
- network analysis 164
- neuroscience 14–15
- Nisbett, Richard E. 266
- Nodle, Boris 186
- normal science 226
- normative analysis 21
- norms 12
- norm entrepreneurs 13
- p. 283North, Douglass 124. 134–5, 136
- on importance of institutional structure 128
- Nowak, Martin 167
- nudges 208–12
- Oandasan, Robert 136
- observational equivalence 237
- O’Connor, Sandra Day 67
- Oliveira, Candido Luiz Maria de 186
- Orentlicher, David 210
- organ transplantation 14
- Ostrom, Elinor 156
- paradigm 226
- paradox of compensation 25
- Pareto efficiency 73–4, 109
- see also efficiency
- Pareto optimality 112, 120
- Pareto, Vilfredo 73–4 (n. 2)
- Pargendler, Mariana 10
- Parsons, Talcott 157
- paternalism 209
- path dependence 163–4
- industry clustering as an example 163
- VHS v. Betamax 163
- payday lenders 153
- Peevyhouse v. Garland Coal & Mining Co. 37
- permanent income hypothesis 215 physical exit
56
- see also contractual exit; regulatory exit
- Pigou, Arthur C. 2
- Pigouvian tax 24, 78–9
- problems with Pigouvian taxes 79
- Pike Creek Claimant’s Union 143 Pildes, Richard 215 Pirsig, Robert 244
- Planck, Max 5 (n. 9)
- Polinsky, A. Mitchell 28
- see also BPS model of crime positive analysis 21
- positivists (Kelsen, Hart, Raz) 108
- cf. anti-positivist
- Posner, Richard A. 19, 22, 112, 124, 232
- Powell, Lewis 67
- practical rationality 103, 104
- prediction theory of law see Holmes
- presentment (the executive veto) 46
- Price, George 165
- price theory 1
- Priest, Claire 139, 144
- prisoners’ dilemma 49
- and dormant Commerce Clause 60
- private lighthouses 143
- private ordering 141–3
- see also whaling; Ellickson
- productive efficiency see efficiency
- property and contract law in imperial Japan 128
- property law, economic analysis of 77–9
- efficiency of right to exclude 80
- property rights in post-plague England 128
- property rights in the American West 128
- property rules 32–4
- cf. liability rules
- see also Calabresi and Melamed
- public choice, defined 44
- public good 78
- pure strategy equilibrium 87
- cf. mixed strategy equilibrium
- Ramseyer, Mark 144, 145
- randomized controlled trials 267
- rational choice theory and rationality 1, 204, 205
- Rawls, John 103, 110
- Raz, Joseph 108–9, 116
- real covenants 98
- p. 284receipt rule in contract
87
- cf. mailbox rule
- default rule in Germany 88
- regulatory cat-and-mouse with those regulated 153
- regulatory exit 56
- rent-dissipating game in contract negotiations 83
- replicator dynamics 166
- reproduction 158
- research journal, importance of 271, 272
- respondeat superior 96
- retirement saving 215–18
- Richardson, Gary 135–6
- Robbennolt, Jennifer 258, 271, 272, 274
- Robinson, James 131, 146
- Robinson, Paul 224–5
- Roithmayr, Daria 9
- Rosenthal, Jean-Laurent 137
- Rubin, Paul, on evolutionary theory of common law development 129
- criticisms of Rubin’s theory 129
- Samuelson, Paul 8
- Sarbanes-Oxley Act 123
- Sauser-Hall, Georges 185
- Save More Tomorrow 214–15
- Schelling, Thomas 155, 156, 203
- model of residential segregation 155
- Schneider, Carl 219
- Schumpeter, Joseph 156
- Schwartz, Alan 3, 237–8
- scientific method 247
- Scott, Robert C. 3
- Second Fundamental Theorem of Welfare Economics 120
- Securities Act of 1933 123, 131
- securities regulation 131
- selection effect in empirical evidence 256 (n. 28)
- selection in evolution 158
- Seligman, Martin 212–13
- Shaffer, Greg 12
- Shapiro, Jesse 223
- shared or pooled resources as source of inefficiency 78
- see also tragedy of the commons
- Shavell, Steven 14, 28
- see also BPS model of crime
- Shen, Francis X. 15 (n. 28)
- Sigmund, Karl 167
- Simon, Herbert 157, 161
- slavery and efficiency 114
- slaves, free market in, and Pareto optimality 112–13
- Smith, Adam 156
- Smith, Henry, on open fields 127
- Smith, John Maynard 165 Snow, Dr. John 248–9 (n. 10)
- social and cognitive psychology 204
- social choice theory 47–9
- social norms 12–13
- social utility function 8
- Society for the Evolutionary Analysis of Law (SEAL) 15
- Spamann, Holger 137
- specific performance (as contract remedy) 82
- Spector, Horacio 8
- Spulber, Daniel 165
- Spur Industries v. Del W. Webb Development Co. 37
- standing 61–9
- Stapel, Diederik 270–71
- stare decisis as a cycle-breaking rule 67
- Stasavage, David 134–5
- Stearns, Max 8
- Stewart, Potter 67
- Stigler, George
- interest-group theory of regulation 128
- strict liability 24–5
- as a moral hazard problem for victims 24
- see also tort, economic analysis of
- subjective value 38
- p. 285Sunstein, Cass R. 208–9
- Sussman, Nathan 134–5
- System I thinking 235 (n. 35)
- System II thinking 235 (n. 35)
- Tarde, Gabriel 185
- tax-shelter promoters 153
- Taylor, Charles 119
- Telecommunications Act of 1996 164
- Texas A&M University School of Law 10
- Thaler, Richard 215, 208–9, 228
- Tiebout, Charles 53
- see also jurisdictional competition
- Tit-for-Tat (TFT) game strategy 167
- see also dynamic evolutionary game theory
- tort, economic analysis of 84–5
- tragedy of the commons 78
- transaction costs 2, 32, 33
- Tversky, Amos 204, 207
- Ulen, Thomas S. 102, 213, 223, 231, 27, 272
- Uniform Anatomical Gift Act (UAGA) of 1987 212
- Revised 2006 212
- Uniform Commercial Code, Article 2 79 (n. 11), 80 (n. 12)
- unilateral care model 24
- see also bilateral care model
- unitary resource ownership, efficiency of 78
- Universidad Torcuato Di Tella 8
- University of California-Davis 64
- University of California at Irvine School of Law 12
- University of Chicago Law School 12
- University of Illinois College of Law 9, 10, 12
- University of Maryland Francis Carey School of Law 8
- University of San Diego School of Law 8
- University of Southern California Gould School of Law 9, 11–12
- US v. Carroll Towing Co. 23
- see also Hand test
- value monism and pluralism 116–18
- Vanderbilt University School of Law 15
- variation 157–8
- Veblen, Thorsten 156
- veto gates 46
- vicarious liability 96
- Volcker Rule 173
- Wahl, Jenny Bourne, on judge-made law governing slavery 128
- Wallis, John 136
- Watson, Gary 106
- Watson, Timothy 21–14
- weakness of will (akrasia) 233
- wealth 109
- wealth maximization see Kaldor-Hicks efficiency
- Weber, Max 157
- Weingast, Barry 134–5, 136
- Weinstein, Mark 137
- whaling industry 141–2
- willingness to accept 38
- willingness to pay 38
- Willis, Lauren 219
- Wolfers, Justin 132, 257
- Wolff, Martin 186
- women’s control of their earnings and property 132–3
- see also couverture
- women’s right to vote and government spending 132–3
- Wright, Joshua D. 238 (n. 41)
- Wright, Sewall 156
- writing well 15–16