SOSC 2330:
Political Economy of Law, Policy and Organization
Take Home Mid Term Exam Fall 2014
Name: Jonah Goldrich Student ID: 212866380
T.A: Jan Krouzil
Professor: Sonya Scott
Date: November 3rd, 2014
Part A:
1) Homo economicus is a theoretical concept that frames humans as rational and self-interested individuals. A homo economicus must have the ability to recognize its own self-interest, and in turn act upon that self-interest. Economists have traditionally used the concept to describe a rational individual who quantifies their self-interest while enjoying true economic freedom. These concepts were central to Adam Smith’s notion of the invisible hand and economic efficiency. According to Smith, the most efficient economies are those that allow individuals the freedom to pursue their own self-interest free of government intervention (Ward, 104).
Ian Ward, in his work Introduction to Critical Legal Theory, …show more content…
Coase explains that if one party’s actions negatively effect a second party’s actions, the common question asked is how should we prevent the first party from carrying out those actions? Yet, Coase explains we are asking the wrong question. If the first party is not allowed to carry out it’s actions, it will in turn have a negative impact on the party itself. So, the true question that should arise from this, is should party A be allowed to harm party B, or should party B be allowed to harm party A? (Coase, 2) Coase uses the example of a doctor and a confectioner in their respective work environments. “….case of a confectioner the noise and vibrations from whose machinery disturbed a doctor in his work. To avoid harming the doctor would inflict harm on the confectioner.” (Coase,
Political Economy of Law, Policy and Organization
Take Home Mid Term Exam Fall 2014
Name: Jonah Goldrich Student ID: 212866380
T.A: Jan Krouzil
Professor: Sonya Scott
Date: November 3rd, 2014
Part A:
1) Homo economicus is a theoretical concept that frames humans as rational and self-interested individuals. A homo economicus must have the ability to recognize its own self-interest, and in turn act upon that self-interest. Economists have traditionally used the concept to describe a rational individual who quantifies their self-interest while enjoying true economic freedom. These concepts were central to Adam Smith’s notion of the invisible hand and economic efficiency. According to Smith, the most efficient economies are those that allow individuals the freedom to pursue their own self-interest free of government intervention (Ward, 104).
Ian Ward, in his work Introduction to Critical Legal Theory, …show more content…
Coase explains that if one party’s actions negatively effect a second party’s actions, the common question asked is how should we prevent the first party from carrying out those actions? Yet, Coase explains we are asking the wrong question. If the first party is not allowed to carry out it’s actions, it will in turn have a negative impact on the party itself. So, the true question that should arise from this, is should party A be allowed to harm party B, or should party B be allowed to harm party A? (Coase, 2) Coase uses the example of a doctor and a confectioner in their respective work environments. “….case of a confectioner the noise and vibrations from whose machinery disturbed a doctor in his work. To avoid harming the doctor would inflict harm on the confectioner.” (Coase,