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  •  I agree. (2+ / 0-)
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    Sparhawk, cardinal

    I consider economics a useful tool which helps with law in all its stages, from the legislative process to drafting contracts.

    However, my interest is a bit different than yours. The approach I use for my thesis doesn't stress predictable irrationality so much as bounded rationality: People try to achieve their goals rationally, but are limited by the limits of brainpower, imperfect information, and uncertainty. You cannot plan all the outcomes in advance and stipulate against them.

    Add opprtunism and asset specifity (the identity of the parties matters, since changing them means a loss of value) into the mix and sprinkle it with generic transaction costs, and you have a formidalbe toolbox for institutional solutions which run from market to hierarchy.

    Iuris praecepta sunt haec: Honeste vivere, alterum non laedere, suum cuique tribuere. - Ulpian, Digestae 1, 3

    by Dauphin on Thu Jan 20, 2011 at 08:28:17 AM PST

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