The paper discusses the function of law in the formation of global financial markets and how this process affects at the same time the traditional concept of law. The examples used to illustrate this point include the prohibition of insider trading, the battle over accounting standards, the...

I examine the connection between the discursive dilemma and corporate law. The discursive dilemma (or doctrinal paradox) is a distinctive social choice problem that was first identified by Kornhauser and Sager and later used as the basis for a theory of organizational personality by Pettit. I...

In the literature on international marketing it is generally agreed upon that the location of production has considerable effects on consumers' beliefs about product quality. In this paper, a rational choice explanation for this fact is offered. Due to differences in country-specific costs (such...

Previous work on the regulation of termination clauses in franchise contracts has ignored the ability of parties to contract around state law. Using data on two national fast-food restaurants, we find that Washington, D.C.'s termination restriction which did not restrict choice-of-law provisions...

There is extensive literature on whether courts or legislators produce efficient rules, but which of them produces rules efficiently? The law is subject touncertainty ex ante; uncertainty makes the outcomes of trials difficult to predict and deters parties from settling disputes out of court. In...

This paper develops a general model of anticommons fragmentation in property. Using several related examples, we consider the equilibria obtained under different scenarios. The various illustrations are later utilized to develop a model of fragmented property. The model reveals that the private...

Wrongful convictions may increase the level of crime over the ideal case of their absence. The problem of wrongful conviction is most serious in areas where crime is endemic and for certain groups of citizens who are stereotyped. State liability mitigates this problem; compensating the...

The veil of uncertainty as an analytical device has been adopted by Buchanan in his works, and this paper argues that the Coase Theorem can be represented by the analytical device of a single owner-wealth maximization apparatus. On the surface, these two analytical devices are unrelated, but the...

Legal rules may be general (that is, applicable to a broad range of situations) or specific. Adopting a custom-tailored rule for a specific activity permits the regulator to make efficient use of information about the social costs and benefits of that activity. However, the rule maker typically...

The German Basic Law is open for an interpretation that would allow the constitutional court to test the normative adequacy of most statutes. If the court does, it could be modelled as the supervisor of the legislator, i.e., of the agent of the people. The model predicts collusion between the...