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The Problem of Social Cost
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In this paper, it is argued that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable, and therefore, it is recommended to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others).Abstract:
This paper is concerned with those actions of business firms which have harmful effects on others. The standard example is that of a factory the smoke from which has harmful effects on those occupying neighbouring properties. The economic analysis of such a situation has usually proceeded in terms of a divergence between the private and social product of the factory, in which economists have largely followed the treatment of Pigou in The Economics of Welfare. The conclusions to which this kind of analysis seems to have led most economists is that it would be desirable to make the owner of the factory liable for the damage caused to those injured by the smoke, or alternatively, to place a tax on the factory owner varying with the amount of smoke produced and equivalent in money terms to the damage it would cause, or finally, to exclude the factory from residential districts (and presumably from other areas in which the emission of smoke would have harmful effects on others). It is my contention that the suggested courses of action are inappropriate, in that they lead to results which are not necessarily, or even usually, desirable.read more
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Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure
TL;DR: In this article, the author's final draft is available from: http://dx.doi.org/10.1002/smj.4250150403, and the full version of this paper is available online.
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Service-Dominant Logic: Premises, Perspectives, Possibilities
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Coase Versus the Coasians
TL;DR: In this paper, the authors compare the regulation of financial markets in Poland and the Czech Republic in the 1990s and show that strict enforcement of the securities law by a highly motivated regulator was associated with a rapidly developing stock market.
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1 The Fundamental Agency Problem and Its Mitigation: Independence, Equity, and the Market for Corporate Control
TL;DR: A review of the fundamental agency problem and its mitigation through independence, equity, and the market for corporate control can be found in this paper, where the three principal approaches that have long been proposed to mitigate the fundamental problem remain contentious.
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Inequality as a Cause of Environmental Degradation
TL;DR: The extent of environmentally degrading economic activity is a function of the balance of power between the winners, who derive net benefits from the activity, and the losers, who bear net costs as mentioned in this paper.
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Book
The law of torts
TL;DR: A single volume introduction to contemporary tort and injury law is presented in this paper, which covers direct and intentional interference with person or property and explores their defenses, and reviews liabilities, damages, and the apportionment of responsibility among parties, and examines the criticism and choices in tort law.