《法律经济学》课程PPT教学课件（法律的经济分析）经济学与法律的对话（大卫·弗里德曼）L&E 1 31 The Problem of Social Cost

Questions on Last Week

Questions on Last Week

Questions on "The Problem of Social Cost

Questions on “The Problem of Social Cost

"Externalities"are Jointly Caused

“Externalities” are Jointly Caused

Price Theory Framework Cost of inputs=their value in the best alternative use Price of outputs=their value to those who buy them

Price Theory Framework • Cost of inputs=their value in the best alternative use • Price of outputs=their value to those who buy them

Farmer and Rancher If Rancher liable for damage to crops If Rancher not liable If no bargaining possible

Farmer and Rancher •If Rancher liable for damage to crops •If Rancher not liable •If no bargaining possible

Basic Argument With zero transaction costs,it never pays to leave money on the table

Basic Argument • With zero transaction costs, it never pays to leave money on the table

More Cases,the Same Logic Confectioner vs Doctor Bleaching Coconut Matting Blocking the draft of a chimney ·Jolly Angler Brewing

More Cases, the Same Logic • Blocking the draft of a chimney • Bleaching Coconut Matting • Confectioner vs Doctor • Jolly Angler Brewing

Judge Uke Story The sound of the money pays for the smell of the food

Judge Uke Story • The sound of the money pays for the smell of the food

If Transaction Costs are Not Zero

If Transaction Costs are Not Zero

Judge's Basis for Deciding the Case May Seem Irrelevant to the Economist But It may be designed to give a predictable rule Or be a proxy for relevant considerations

Judge’s Basis for Deciding the Case May Seem Irrelevant to the Economist But •It may be designed to give a predictable rule •Or be a proxy for relevant considerations