In the early stock market in London there were substantial risks of non-payment and fraud. (Mortimer, 1801) According to Hobbesian theory, we would expect stock markets to develop only after government has implemented rules and regulations to eliminate these problems. The historical account,...

Nearly one thousand years ago, before the existence of centralized government police and courts in England, disputes were settled in a decentralized and in many ways voluntary manner. When disputes occurred, private groups would ask the wrongdoer to pay restitution to the victim, and if the...

In most areas, economists look to competition to align incentives, but not so with courts. Many believe that competition enables plaintiff forum shopping, but Adam Smith praised rivalry among courts. This article describes the courts when the common law developed. In many areas of law, courts...