Mid term review 332

Mid term review 332 - 1 Introduction Econ 332 Spring 2011...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Introduction Econ 332 Spring 2011 Harrison Cheng Property Rights Possessory rights: use right, renters rights, workers right of using companys resources, preventing others use of the property Rights of Transfer Justifications of property rights 1. Incentive to work (the principal agent model) 2. Incentive to maintain and improve things 3. Incentive to make transfers 4. Avoid conflict (say between miners during the Gold Rush of California) 5. Protection against risk (allowing risk sharing through insurance) 6. Equity issues in Income distribution 7. Justification of private property: Schlater (1951), Private Property, the history of of idea, London, Allen and Unwin Heilbroner (1987), Capitalism, Palgrave Dictionary Kowalik (1987), Central Planning, Palgrave Dictionary Shleifer (1998), State versus Private Ownership, Journal of Economic Perspectives Emergence of Property Rights Land rights in California Gold Rush Property rights in sot countries Right of buying property in a foreign country Divisions of Property rights Separation of ownership and control Limitations of rights: Homeowners Associations Renters Rights Priority arrangements between creditors, and stock owners during bankruptcy Hierarchy within organizations Control through legal institutions Acquisition of Un-owned Property Spectrum Auctions Development of New Products: drugs, ipads, patents, books, movies Search for fisheries Externality effect in search: If I succeed, then you have less chance of success. Finder-Keeper Principle: single vs. multiple individual inefficiency issues in fishery industry Protection of Property rights Registration: cars, houses, boats beyond a certain size, airplanes, patented products, etc. Notaries for contracts Virtual registration: well-known owner of a particular product (painting) Principles of determining the owner of an unregistered product Legal protection from theft, robbery, entry and unauthorized use Registration of ownership For major items such as houses or cars, registration of title is required. For most items, there is no such registration to burden commerce. Security of contracts is strengthened by the system of notaries. In some countries, such as Italy, notaries can only be performed by lawyers, and are expensive. If an item has a well-known owner (Getty museum owns the Van Gogh piece), then this is virtually a registered product. Serial numbers sometimes help to identify the true owner. Sale by eBay auctions is sometimes an item obtained by theft. Loss and Recovery Socially optimal way to prevent loss and recover lost property: discourage theft and sale of stolen goods Two legal approaches toward ownership: bona fide purchase rule v. original ownership rule Stolen Property You bought a used TV from someone and the TV turned out to be a stolen property. The police TV turned out to be a stolen property....
View Full Document

This note was uploaded on 03/06/2011 for the course ECON 332 taught by Professor Jeong during the Spring '10 term at USC.

Page1 / 151

Mid term review 332 - 1 Introduction Econ 332 Spring 2011...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online