Towards a Law and Economics of Power
UNDERSTANDING POWER: A LAW AND ECONOMICS APPROACH, Saarbrücken: VDM-Verlag Publisher, 2009
163 Pages Posted: 15 Apr 2008 Last revised: 21 Oct 2010
Date Written: April 1, 2008
[Pre-print version] The subject is not remote, philosophical nor esoteric; no one should venture into it with the feeling that it is a mystery that only the privileged can penetrate. Moreover, no one should surrender to a subject of such a great practical importance as this. The subject under scrutiny is power, and the attempt of this dissertation is to analyze its notion through the lens of a Law & Economics approach. This work has dealt with institutions as structures of power and countervailing power determined by a complex architecture of jural relations.
The work is organized as follows. Section A is aimed at introducing the four elements to be considered in any analysis upon power relations: jural positionality, Commonsian transaction, cumulative effects, and, lastly, the jural incompleteness. These four 'components' allow us to investigate power in its three manifestations within the Coasean institutions, namely in the market, in the firm and in the State. This is the goal of section B.
Keywords: power, institutions, jural positionality, Commonsian transaction, contractual incompleteness, liberalism, market dominance, firm hierarchy, outside options, New Institutional Economics, State imposition
JEL Classification: B25, K00, K31, I12, I13, I40
Suggested Citation: Suggested Citation