PHIL 3040 Lecture Notes - Lecture 6: Coase Theorem, Richard Posner
11 Oct 2018
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Document Summary
The basic claim on law and economics is straightforward. It serves the goal of efficiency and wealth maximization. Law and economics is a hard core capitalists approach in legal philosophy. The basic claim seems straight forward: law serves the goal of economic efficiency and is a tool for wealth maximization. Advocates of law and economics make three basic claims: a descriptive claim: some laws are efficient, an explanatory claim: efficiency explains the rules we have, a normative claim: we ought to have efficient laws. In economics the term efficiency is understood in a varity of ways. Efficiency is understood as what produces pareto- superiority. The law needs not assign properties in any particular way, but when conditions are not met the law take a market like roll to achieve efficiently. Human being are rational beings and their rationality is instrumental. You think of a particular mean to achieve a particular end.
