Abstract

http://ssrn.com/abstract=1671692
 
 

Footnotes (161)



 


 



Strategic Spillovers


Daniel B. Kelly


Notre Dame Law School

September 3, 2010

Columbia Law Review, Vol. 111, No. 8, p. 1641, December 2011

Abstract:     
The conventional problem with externalities is well known: Parties often generate harm as an unintended byproduct of using their property. This Article examines situations in which parties may generate harm purposely, in order to extract payments in exchange for desisting. Such “strategic spillovers” have received relatively little attention, but the problem is a perennial one. From the “livery stable scam” in Chicago to “pollution entrepreneurs” in China, parties may engage in externality-generating activities they otherwise would not have undertaken, or increase the level of harm given that they are engaging in such activities, to profit through bargaining or subsidies. This Article investigates the costs of strategic spillovers, the circumstances in which threatening to engage in these spillovers may be credible, and potential solutions for eliminating, or at least mitigating, this form of opportunism through externalities.

Number of Pages in PDF File: 81

Keywords: Externalities, Spillovers, Coase, Coase Theorem, Bargaining, Subsidies, Opportunistic, Strategic

JEL Classification: K11

Accepted Paper Series





Download This Paper

Date posted: September 5, 2010 ; Last revised: May 24, 2012

Suggested Citation

Kelly, Daniel B., Strategic Spillovers (September 3, 2010). Columbia Law Review, Vol. 111, No. 8, p. 1641, December 2011. Available at SSRN: http://ssrn.com/abstract=1671692

Contact Information

Daniel B. Kelly (Contact Author)
Notre Dame Law School ( email )
P.O. Box 780
Notre Dame, IN 46556-0780
United States
574-631-7690 (Phone)
574-631-8078 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 909
Downloads: 151
Download Rank: 117,058
Footnotes:  161

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.375 seconds