I. Introduction -- 1. Law and Economics and the Economics of Legal Regulation -- II. Law and Economics -- 2. Efficiency, Equity and Inalienability -- 3. Negotiated Settlement -- 4. Economic Efficiency and the Common Law: A Critical Survey -- 5. Default Risk and the Optimal Pricing of Court...

Our “Restated diversification theorem” (Skogh and Wu, 2005) says that risk-averse agents may pool risks efficiently without assignment of subjective probabilities to outcomes, also at genuine uncertainty. It suffices that the agents presume that they face equal risks. Here, the theorem is...