property acquisition (chap 4) and chap 3

Question 1

what is real property?

Answer 1

they are land, buildings, etc.

Question 2

what is personal property?

Answer 2

it refers to that which is movable

Question 3

what is the tragedy of the commons?

Answer 3

It is an economic problem in which every individual has an incentive to consume a resource at the expense of every other individual with no way to exclude anyone from consuming

Question 4

The tragedy of the commons and Game Theory

Answer 4

The prisoner’ dilemma is not game theory

because prisoner dilemma is non-cooperative

the differences are in the risk if you trust in the cooperation or not.

everything else is similar.

Question 5

what is a property right?

Answer 5

It is an enforcable entitlement to a resource.

Question 6

how are property rights are acquired?

Answer 6

• social norms and private aggrements (contracts)
• Common law
• the statutes & administrative law

Question 7

what common law refers to ?

Answer 7

it referss ot law created basesd on previous positions courts have taken

Question 8

what statutes & administrative law do?

Answer 8

it override a precendent found in common law.

possible inefficient because of lobbying.

they are usually used to preserve our resource.

Question 9

prroperty ownership regimes known to societies:

Answer 9

1. Res Privatae: private ownership
2. Res Publicae: Public ownership
3. Res Communes: Private property owned by a group of individuals. (the public space is control by a group or community)- buildings, corporations, etc.
4. Res Nullius: Property owned by no one - open access such as abandon property
5. Mixed property system: made up by one or more system

Question 10

Arthur Pigou’s Theory of Welfare Economics

Answer 10

He examined a worrld in which unintended costs and benefits exist.

Claim there is not perfect equilibrium in the market therefore, government may be needed. (externalities not accounted in the market)

the mayor disagreement is the solution to externality, he advocated taxes in the amount of the hidden cost (hide externality)

Question 11

The coase theorem

Answer 11

Goverment can fail as well

• Assume the neoclassical assumptions
• the externalities are better deal for the markets
• it would cost more with government
• focus in the least cost avoided.
• it influence modern law and economic