About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

47 Eur. J.L. & Econ. 1 (2019)

handle is hein.journals/eurjlwec47 and id is 1 raw text is: European Journal of Law and Economics (2019) 47:1-14 https:Ildoi.org/l 0.1007/s10657-018-9604-9 CrossMark Common law efficiency when joinder and class actions fail as aggregation devices Frank Fagan' Urmee Khan2 Published online: 9 November 2018 © Springer Science+Business Media, LLC, part of Springer Nature 2018 Abstract We develop a litigant-based model of rule selection where parties choose to litigate rules that are efficient between two parties, but inefficient as between a potential class or potentially joined litigants and a counter-party. Collective action prob- lems lead to incomplete party formation, which generates continuous litigation of seemingly efficient rules. By accounting for externalities borne by non-parties, we show that rules which are allocatively efficient across both parties and non-parties are evolutionary stable for any given judicial ideology or judicial preference for prestige, thus preserving the explanatory power of the Efficiency of Common Law Hypothesis. Keywords Efficient common law hypothesis - Joinder - Class actions - Baconian judges JEL classifications K13 - K15 - K41 1 Introduction Over the past few decades, the Efficiency of Common Law Hypothesis has failed to withstand empirical verification. Leading empirical work in tort law, especially with respect to the economic loss rule, has demonstrated apparent inefficiencies within the common law. Recognition of an observed tendency toward redistribution, even E Frank Fagan frank.fagan@edhec.edu EDHEC Business School, Lille, France 2 University of California, Riverside, USA I_) Springer

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most