The Rhino's Horn: Incomplete Property Rights and the Optimal Value of an Asset

Posted: 29 Mar 2002

Abstract

Under certain conditions it is possible for the costs of enforcing property rights to exceed their benefit for assets with high first-best values. Under these conditions, previously privately held assets may revert to the public domain. This paper analyzes this prospect and considers attempts to lower the gross value of the asset as a possible method of maintaining the private property right. The paper examines several examples including built in obsolescence and penal colonies to demonstrate the general idea.

Suggested Citation

Allen, Douglas W., The Rhino's Horn: Incomplete Property Rights and the Optimal Value of an Asset. Journal of Legal Studies, Vol. 31, No. 2, Part 2. Available at SSRN: https://ssrn.com/abstract=302381

Douglas W. Allen (Contact Author)

Simon Fraser University ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada
604-291-3445 (Phone)
604-291-5944 (Fax)

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