Abstract

http://ssrn.com/abstract=954937
 
 

References (40)



 


 



The Single Constituency Argument in the Economic Analysis of Business Law


David Millon


Washington and Lee University - School of Law


Research in Law and Economics, 2007
Washington & Lee Legal Studies Paper No. 2007-01

Abstract:     
The essay points out an interesting parallel in law-and-economics business law scholarship. Working largely independently of each other, economically oriented scholars working in different areas have argued that the law should focus on the interests of a single constituency - shareholders in corporate law, creditors in bankruptcy law, and consumers in antitrust law. Economic analysts thus have rejected arguments advanced by progressive scholars working in each of these areas that the law should instead concern itself with the full range of constituencies affected by business activity. The law-and-economics single constituency claim rests in part on skepticism about judicial competence but the underlying objection is to the use of law for redistributive purposes. The primary value is efficiency, defined in terms of market-generated outcomes. In this essay, I question this political commitment, suggesting that it implies a strong tendency toward maintenance of the existing distribution of wealth. Even more importantly, the single constituency claim may actually have redistributive implications. In each of these areas of business law, however, it is a regressive program that favors owners of capital against those who are generally less well of, such as workers and small business owners.

Number of Pages in PDF File: 31

Accepted Paper Series


Download This Paper

Date posted: January 10, 2007  

Suggested Citation

Millon, David, The Single Constituency Argument in the Economic Analysis of Business Law. Research in Law and Economics, 2007; Washington & Lee Legal Studies Paper No. 2007-01. Available at SSRN: http://ssrn.com/abstract=954937

Contact Information

David K. Millon (Contact Author)
Washington and Lee University - School of Law ( email )
Lexington, VA 24450
United States
540-458-8993 (Phone)
540-458-8586 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 697
Downloads: 123
Download Rank: 133,404
References:  40

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.281 seconds