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Diversity of Contract Law and the European Internal Market

  • Smits, Jan

This contribution discusses the question whether diversity of contract law among the European member states is a barrier to cross-border trade. This question is important in view of the ongoing debate about the need for a unified European private law. It has tried to answer the question by building upon insights from psychology, economics and law. It turns out that no definitive answer can be given to the question whether the savings in transaction costs through the removal of legal diversity are greater than the losses caused by the termination of competition of legal systems.

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File URL: http://mpra.ub.uni-muenchen.de/8192/1/MPRA_paper_8192.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8192.

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Date of creation: 2005
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Handle: RePEc:pra:mprapa:8192
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  1. Brown, W. Mark, 2003. "Overcoming Distance, Overcoming Borders: Comparing North American Regional Trade," Economic Analysis (EA) Research Paper Series 2003008e, Statistics Canada, Analytical Studies Branch.
  2. Mahoney, Paul G, 2001. "The Common Law and Economic Growth: Hayek Might Be Right," The Journal of Legal Studies, University of Chicago Press, vol. 30(2), pages 503-25, Part I Ju.
  3. Ribstein, Larry E & Kobayashi, Bruce H, 1996. "An Economic Analysis of Uniform State Laws," The Journal of Legal Studies, University of Chicago Press, vol. 25(1), pages 131-99, January.
  4. John Donohue & Steven Levitt, 2000. "The Impact of Legalized Abortion on Crime," NBER Working Papers 8004, National Bureau of Economic Research, Inc.
  5. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
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