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The assignment of rights under economic or legal uncertainty

Author

Listed:
  • Zerbe, Richard
Abstract
This paper explores the relationship between law and applied welfare economics, BCA, and indicates how they are mutually enhancing. A definition of underlying principles for benefit cost analysis is given, from which rules for its application are derived. These rules are useful in considering arguments and outcomes in legal cases and for legal reasoning. I invoke norms, reference points, and legal right uncertainty, along with the role of sentiments and compensation for losses. In doing this the foundations of BCA are explicated and the interrelationship between law and applied welfare economics is made clearer.

Suggested Citation

  • Zerbe, Richard, 2023. "The assignment of rights under economic or legal uncertainty," MPRA Paper 121295, University Library of Munich, Germany, revised Jun 2024.
  • Handle: RePEc:pra:mprapa:121295
    as

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    File URL: https://mpra.ub.uni-muenchen.de/121295/1/MPRA_paper_121295.pdf
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    References listed on IDEAS

    as
    1. Hodgson, Geoffrey M., 2015. "Much of the ‘economics of property rights’ devalues property and legal rights," Journal of Institutional Economics, Cambridge University Press, vol. 11(4), pages 683-709, December.
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    3. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Zerbe, Richard Jr. & Bauman, Yoram & Finkle, Aaron, 2006. "An aggregate measure for benefit-cost analysis," Ecological Economics, Elsevier, vol. 58(3), pages 449-461, June.
    6. Frank, Robert H, 2000. "Why Is Cost-Benefit Analysis So Controversial?," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 913-930, June.
    7. Zerbe, Richard O. & Anderson, C. Leigh, 2001. "Culture And Fairness In The Development Of Institutions In The California Gold Fields," The Journal of Economic History, Cambridge University Press, vol. 61(1), pages 114-143, March.
    8. Meeks, Thomas J., 1990. "The Economic Efficiency and Equity of Abortion," Economics and Philosophy, Cambridge University Press, vol. 6(1), pages 95-138, April.
    9. Kimbrough, Erik O. & Smith, Vernon L. & Wilson, Bart J., 2010. "Exchange, theft, and the social formation of property," Journal of Economic Behavior & Organization, Elsevier, vol. 74(3), pages 206-229, June.
    10. Nussbaum, Martha C, 2000. "The Costs of Tragedy: Some Moral Limits of Cost-Benefit Analysis," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 1005-1036, June.
    11. Richard Easterlin, 2005. "Diminishing Marginal Utility of Income? Caveat Emptor," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 70(3), pages 243-255, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rights; uncertainty; Posner;
    All these keywords.

    JEL classification:

    • K0 - Law and Economics - - General
    • K1 - Law and Economics - - Basic Areas of Law
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)

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