[ECO320Y5] - Final Exam Guide - Ultimate 66 pages long Study Guide!
Document Summary
Lecture #1 - intro to economic analysis of law. Private goods - property rights (i. e. right to damages, right to contract on property rights) Private bads - tort, focused on the individual: harms - physical, mental, emotional, financial damages (economic harm) Public goods - intellectual property (anything that one persons" public consumption does not interfere with another persons" consumption) Law - rule that may or may not have economic consequences for an individual or group: custom, judicial precedent (common law, statutory law, executive decision making. The problem for lawmakers is to maximize social surplus. Laws overtime should: be efficient, be competitive (many price takers, optimal (total welfare) Presumptions: low or zero transactions costs, low or zero information costs, secure private property rights. Perfect equilibrium does not always work when legality is involved. People won"t immediately go buy cars due to safety, but in long term they will) Price goes up, now dwl is in effect.
