Circumvention of Law and the Hidden Logic behind It

The Journal of Legal Studies, Vol. 52, No. 1, p.51, 2023

U of Penn, Inst for Law & Econ Research Paper No. 23-30

33 Pages Posted: 12 Jul 2023

See all articles by Leo Katz

Leo Katz

University of Pennsylvania Carey Law School

Alvaro Sandroni

University of Pennsylvania - Department of Economics; Northwestern University - Kellogg School of Management

Date Written: June 23, 2022

Abstract

The law is full of circumvention maneuvers that lawyers try to exploit and authorities try to suppress. We prove formal results showing that all reasonable legal systems are necessarily extremely manipulable by open schemes that require no type of misrepresentation and no violation of the law. In addition, anti-evasion rules designed to reduce such manipulation can only have limited success, and cannot be easily justified as constituting an improvement.

Keywords: circumvention of law, lawyers, legal systems, anti-evasion rules, loophole exploitation, evasion, law-makers, legal circumvention, manipulation, resequencing, legal route, manipulation theorem, equivalence proposition, choice functions, utility functions, rationalizable by a preference

JEL Classification: K00, K41, K42

Suggested Citation

Katz, Leo and Sandroni, Alvaro, Circumvention of Law and the Hidden Logic behind It (June 23, 2022). The Journal of Legal Studies, Vol. 52, No. 1, p.51, 2023, U of Penn, Inst for Law & Econ Research Paper No. 23-30, Available at SSRN: https://ssrn.com/abstract=4507434

Leo Katz (Contact Author)

University of Pennsylvania Carey Law School ( email )

3501 Sansom Street
Philadelphia, PA 19104
United States
215-898-9334 (Phone)

Alvaro Sandroni

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States
847-491-5461 (Phone)
847-467-1220 (Fax)

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