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Property Rights, Incomplete Contracts, and Social Harm

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Author Info

  • Pitchford, R.
  • Snyder, C.M.

Abstract

The authors construct a model in which a first mover decides on its location before it knows the identity of the second mover; joint location results in a negative externality. Contracts are inherently incomplete since the first mover's initial decision cannot be specified. The authors analyze several kinds of rights, including damages, injunctions, and rights to exclude (arising from covenants or land ownership).

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Bibliographic Info

Paper provided by Australian National University - Department of Economics in its series Papers with number 365.

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Length: 39 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:aunaec:365

Contact details of provider:
Postal: THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.
Web page: http://economics.anu.edu.au/economics.htm
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Keywords: PROPERTY RIGHTS ; EXTERNALITIES ; GAME THEORY;

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Cited by:
  1. Ellingsen, Tore & Johannesson, Magnus, 2000. "Is There a Hold-up Problem?," Working Paper Series in Economics and Finance 357, Stockholm School of Economics.

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