The theory of competition as a discovery procedure argues that the results of this procedure cannot be predicted because of its very nature as a discovery procedure. If this were true, this would imply the impossibilty of testing whether competition actually works as predicted. This article...

This paper explores the conditions under which compliance with a social contract establishes an equilibrium in a society. It is assumed that society consists of two groups, one of which has a comparative advantage in using violence, whereas the other one has a comparative advantage in producing...

The question of third-party access to the networks has become central to the debate around the liberalisation of the European electricity markets due to the natural monopoly characteristic of the transmission network. The European Union's electricity directive provides three institutional...

In this paper we analyze whether trust can overcome the contractual hazards caused by the territoriality of law, how effective trust is and what the impact is on the sequential structure of trade. The paper contributes to the New Institutional Economics of International Transactions (NIEIT).

Ius Commune describes the spontaneous development of a european contract law by adaptive behavior of contracting parties to competing law systems and their interpretations by jursidiction. The idea of spontaneous law harmonization is appealing, since its result is independent of centraized...