• Austrian-vs-Chicago

    Austrian vs. Chicago Schools on Law and Economics

    READINGS

    “Coase and Demsetz on Private Property Rights”
    Block, Journal of Libertarian Studies 1, no. 2 (1977)

    AUDIO

    Law and Economics
    Hans-Hermann Hoppe, Mises University (2003)

    STUDY QUESTIONS

    1. What was Ronald Coase’s seminal article in law and economics?
    2. What is Coase’s argument by which (with low transaction costs) court assignment of liability is irrelevant to production decisions?
    3. How does Block’s example of a flower bed (with high sentimental value) upset the Coasian analysis?
    4. Why does Demsetz think that a volunteer military will yield the same personnel as a draft with the right to purchase exemptions?
    5. How does Block’s focus on psychic income relate to Demsetz’s example?
    6. How does the “let-him-buy-his-way-out” scheme square with traditional notions of property rights?
    7. Do libertarians think businesses should be compensated if they are injured by competitors?
    8. What is the point of Block’s example of “torture rights”?
    9. Why does Block think that State judges might not be the best at estimating costs and benefits?
    10. What other objections does Block raise to the Coasian prescription for cases of high transaction costs?