ECON 101
These are costs and benefits which affect actors out side of a particular economic exchange.
What are Externalities?
This governmental policy forces actors to internalize negative externalities.
What is a Piguovian Tax?
This incentive builds upon discriminatory liability practices of ex post damages?
What are ex ante incentives?
This judge and economic theorist proposed the Cheapest Cost Avoider should bear liability in tort.
Who is Guido Calabresi?
This is an economic transaction, the outcome of which leaves at least one person benefits and no person is worse off.
What is Pareto improvement?
The simple version of this economic theorem assumes negligible transaction costs.
What is the Coase Theorem?
This approach draws upon other social sciences to challenge the rational actor model.
What is behavioral economics?
This proposes that liability of tort lies in the inequality of the cost of precautionary measures weighed against the probability of the harm and the damages of the potential loss.
What is the Hand Formula?
This theory assumes that all economic agents are risk-neutral, self-interested decision makers with perfect information.
What is the rational actor model?
This school developed and expanded the L&E model.
What is the Chicago school?
This process reflects the problem where people do not value the future, theoretical environment over present economic benefit.
What is (temporal) discounting?
This memo prioritized logical coherence of economic policy over praxeological realities and moral concern.
What is Lawrence Summers’s memo?