ECON 235 Study Guide - Final Guide: Contributory Negligence, Punitive Damages, Product Liability
Document Summary
Andro mathewson, law & economics, econ 36 final notes, university of pennsylvania: family law. Families: produce human capital, allows specialization and gains from division of labour iii. Increase the value of consumption: risk pooling insurance mechanism. Children: unintended by-products of sex ii. Income producing investment: non-pecuniary investment joy of childrearing, non-contractibility between parents and children v. Laws to protect children minimal levels of investment/forbid child abuse: fines/prison time hurt children, foster care ex-anti solution, adoption ex-post solution but may be incentive for irresponsible behavior unintended pregnancies. Bilateral monopolies: two parties involved in a long term contract, each make investments to increase the value of relationship, no valuation outside the relationship iii. Inefficient due to threat of termination: possible to forbid termination iv. 1. iv. 2. Cant walk away if abused: unilateral divorce leads to less homicide, suicide and violence. Marriage contract: cannot be crafter specifically to each marriage, only one legal templates exists.
