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Optimization, path dependence and the law: Can judges promote efficiency?

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  • Marciano, Alain
  • Khalil, Elias L.

Abstract

The thesis that judges could (voluntarily or not) promote efficiency through their decisions has largely been discussed since Posner put it forward in the early 1970s. There nonetheless remains a methodological aspect that has never (to our knowledge) been analyzed in relation to the judges-and-efficiency thesis. We thus show that both promoters and critics of the judges-and-efficiency thesis similarly use a definition of optimization in which history, constraints and path-dependency are viewed as obstacles that must be removed to reach the most efficient outcome. This is misleading. Efficiency cannot be defined in absolute terms, as a “global ideal” that would mean being free from any constraint, including historically deposited ones. That judges are obliged to refer to the past does not mean that they are unable to make the most efficient decision because constraints are part of the optimization process; or optimization is necessarily path-dependent. Thus, the output of legal systems cannot be efficient or inefficient per se. This is what we argue in this paper.

Suggested Citation

  • Marciano, Alain & Khalil, Elias L., 2012. "Optimization, path dependence and the law: Can judges promote efficiency?," International Review of Law and Economics, Elsevier, vol. 32(1), pages 72-82.
    • Handle: RePEc:eee:irlaec:v:32:y:2012:i:1:p:72-82
    DOI: 10.1016/j.irle.2011.12.010
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    Cited by:

    1. Elodie Bertrand, 2014. "‘The fugitive’: The figure of the judge in Coase's economics," Post-Print hal-03481745, HAL.
    2. Bartlomiej Biga & Michal Mozdzen, 2021. "Is it Darker in a Larger Courtroom? On the Relationship Between the Size of Regional Court and Exercising the Right to Public Information in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 1189-1203.
    3. Elias L. Khalil, 2012. "Are Instincts Hardened Routines? A Radical Proposal," Monash Economics Working Papers 25-12, Monash University, Department of Economics.
    4. Przemysław Banasik & Katarzyna Metelska-Szaniawska & Małgorzata Godlewska & Sylwia Morawska, 2022. "Determinants of judges’ career choices and productivity: a Polish case study," European Journal of Law and Economics, Springer, vol. 53(1), pages 81-107, February.
    5. Monika Stachowiak-Kudła & Janusz Kudła, 2022. "Path dependence in administrative adjudication: the role played by legal tradition," Constitutional Political Economy, Springer, vol. 33(3), pages 301-325, September.
    6. Przemyslaw Banasik & Monika Odlanicka-Poczobutt & Maciej Wolny & Sylwia Morawska, 2020. "Preliminary Identification of Quantitative Factors Determining the Duration of Court Proceedings in Commercial Cases," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 279-293.
    7. Khalil, Elias L., 2017. "Socialized view of man vs. rational choice theory: What does smith’s sympathy have to say?," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 223-240.
    8. Charles Delmotte, 2021. "Simple rules and the Political Economy of Income Taxation: the strengths of a uniform expense rule," European Journal of Law and Economics, Springer, vol. 52(2), pages 323-339, December.

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    Keywords

    Judicial decision making; Historical inertia; Inefficiency; Adaptationism; Spandrelism; Global ideal; Rationality; Lock-in institutions;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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