Scope of Property Rights

Question 1

Possession

Answer 1

Established effective control, with intent to maintain such control

Question 2

Intentional trespass v. Intentional nuisance

Answer 2

Trespass: protects possession, generally deals with larger objects like a person. Defenses are necessity, statutory, or invitation from owner

Nuisance: protects use and enjoyment, requires harm and an unreasonable interference

Question 3

Coase Theorem

Answer 3

Gives property rights to the owner that values it the most. Does not care about who is in the wrong, but rather what is most economically efficient

Question 4

John Locke

Answer 4

• Property rights arise from human labor
• Every human has property right in their person
• People acquire property through labor
• Result of human endeavor

Question 5

David Hume

Answer 5

• Property rights arise from the state
• Property is nothing but goods
• Without the state we would just have possession
• Law creates property rights
  (Today’s approach)

Question 6

Policy Toolkit (most important one)

Answer 6

1. Incentives to maximize investment/ well-being
2. Owner Autonomy
3. Prevent self-help
4. Transaction costs
5. Comparative societal interests (life v. trespass)
6. Equitable consideration/ good faith
7. Custom
8. Business dealings/ fair competition
9. Ease of administration
10. Certainty of borders