Foundations of Law and Economics
Introductory
Externalities
Costs or benefits of an activity that are not fully borne or captured by the actor making the decision.
Why It Matters
Externalities are a basic reason legal systems define property rights, impose liability, require disclosure, regulate risk, or create public enforcement mechanisms.
Selected Literature
A short list of directly relevant archive entries.
1960
Introductory
1961
Intermediate
1967
Intermediate
2004
Advanced
Related Cases
1879
Foundations of Law and Economics
Sturges v. Bridgman
11 Ch. D. 852 (1879)
Nuisance, coming to the nuisance, and reciprocal conflicts over incompatible land uses.
1972
Foundations of Law and Economics
Spur Industries, Inc. v. Del E. Webb Development Co.
108 Ariz. 178, 494 P.2d 700 (1972)
Coming to the nuisance, injunctions, and indemnity for relocating incompatible land uses.
1910
Foundations of Law and Economics
Vincent v. Lake Erie Transportation Co.
109 Minn. 456, 124 N.W. 221 (1910)
Private necessity, compensation, and liability for intentional emergency use of another's property.
1707
Foundations of Law and Economics
Keeble v. Hickeringill
11 East 574, 103 Eng. Rep. 1127 (K.B. 1707)
Property protection, malicious interference, and incentives to make productive use of land.