Theory - Bundle of Sticks Flashcards
Right to Exclude - Navigable Waters
Common law - entitled to use the water over his land
Civil Law - reasonable use of the entire surface of the water
Name the sticks in the “Bundle of Sticks”
Right to exclude Right to Use Right to destroy Right to transfer Right to modify
Externalities
When one’s actions produce a cost which he does not have to bear, or produces a benefit from which he cannot benefit
Real Property
Land or anything permanently attached to land
Personal Property
Moveable property - includes all property that is not real property
Policies behind Property
Economic efficiency, fairness, certainty, personhood, democracy
Economic effeciency
The protection of property gives people an incentive to produce and therefore leads to wealth maximization for society as a whole. By making property transferable, the free market will help to ensure land is used for its “Highest and best use.”
Fairness - Labor theory
When one enhances the value of publicly held property, that property becomes the property of the actor
Ex. Manure
Certainty
Increases the value of property because the less certain one regarding their rightful ownership of a piece of property, the less they are willing to pay for it
Federal Land Patent
grants Root of title - first in possession, superior title interest over all
Personhood
Owning property allows people to express themselves through creative use of the property. Overtime property becomes an extension of one’s identity
Democracy
A nation of property owners supports stability because people have a stake in maintaining law and order
Right to Exclude
One has the right to exclude others from their property
Very important Stick
Always connected to trespass - no actual damage required to recover damages
Right to Exclude - Ad Coelum Doctrine
Land ownership extends all the way up to heaven and down to hell
Modern Rule - Owner has exclusive use of airspace immediately above his land
Right to Exclude - Public interest
Public interest can outweigh the right to exclude
Ex: Ranch owner cannot exclude aide workers from helping workers who live on property
