Property and Liability: An Introduction to Law and Economics from Coursera

What's inside

Syllabus

Property

Property is where law and economics meet, but it's not a simple concept. Property is not an object or a relation between people and objects, but a set of rights, relations among people over who is to control each of the many uses to which objects can be put. Different people may control different uses of an object, that is, have different property rights over its various uses, at the same time, or control the same use of the object at different times. When new uses create disputes, the law must define new property rights and allocate them initially to resolve the dispute – someone must be deemed to have won the dispute and be given initial ownership of the new rights. But once the former disputants are allowed to trade these rights among themselves, surprising results follow.

Exchange and Efficiency

Voluntary exchange implies mutual benefit – when people trade property rights, it's because they each believe that what they get from the trade will be more valuable to them than what they have to give up to get it. So if there are no obstacles to voluntary exchange, that is, if transaction costs are low, property rights will end up in the hands of the person who values them the most, a result economists call an efficient allocation of the rights. What happens when there are barriers that impede or prevent property rights from reaching their highest valuing owner through exchange? Can the law assign property rights to achieve efficient allocation in such cases? Should it try, or are there values other than efficient allocation the law might try to advance, along with or instead of efficient allocation, in assigning property rights?

Externality

Exchange involves both benefit and cost – traders take rights from others, imposing costs on them but creating benefit for themselves, but they must compensate the others for their costs by paying for the rights they've taken. External costs are imposed when one person takes another's rights without paying for them, which leads to the taker taking more rights than efficient allocation would allow and leaves the victim uncompensated for the costs of losing the rights. The law's response to this inefficiency and injustice is liability, forcing those who take rights without payment to compensate those whose rights they have taken for the costs they have borne. Thinking about how the law determines these liability prices, and how people might respond to them, reveals the underlying economic logic of liability.

Crime and Punishment

Some externalities involve only a few uncompensated losers of rights whose costs are easily reckoned in monetary terms, so that forcing the taker to pay exactly these costs to the victims ensures both that victims will be fairly compensated and that takers will take rights only where they value the rights more than the losers do. The law calls these externalities torts, and the same principle of liability pricing extends to crimes, in which, with the same unlawful act, someone simultaneously takes the rights of many people who suffer moral costs that can't be satisfactorily measured by money. As with torts, some crimes may be efficient reallocations of rights, and the logic of liability shows that proportional punishment can, ideally, discover which crimes are or are not efficient and force all takers to compensate their victims in full for what they take.

Property, Utility and Technology

The concept of property is developed in two new directions. One concerns the problem of eminent domain and evokes the ancient conflict between individual rights and collective needs – in what circumstances, and to what extent, should private property be protected against uncompensated taking by government? How do the different theories of property considered earlier each answer this question? The other asks how voluntary exchange can be organized when technology makes it easy for people to take others' property rights without compensation. If existing rights are insufficient to prevent these takings from occurring on a large enough scale to make voluntary exchange impossible, new kinds of property rights are needed to encourage efficient levels of production and exchange. This is illustrated by the problem of intellectual goods and the new forms of property that have evolved over centuries to make exchange in ideas possible.

Criminal Procedure

Criminal liability means that crimes have prices, and how these prices are exacted in practice from people who take rights without compensation is the problem of criminal procedure. How do judges know who is guilty, and what prices guilty people should be made to pay for their crimes? Around the world, two major systems of adjudicating guilt and punishment, the adversarial and the inquisitorial, have evolved over centuries to answer these questions in individual cases, with very different procedures to assess guilt and punishment that express different commitments to truth and fairness. All these procedures are expensive, and governments everywhere must confront the problem of processing large caseloads with limited resources. This has led the inquisitorial systems of Europe and the adversarial systems of England and the United States to new procedures of adjudication that may be reducing the differences between them.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores how law and economics collide in property rights

Primarily focuses on American law, which may not be applicable or relevant for learners in other jurisdictions

May strengthen existing foundation for learners with background in law and economics

Develops core skills in property, proportional liability, and economic reasoning

Taught by Richard Adelstein, a recognized expert in law and economics, which lends credibility to the course material

Offers a comprehensive examination of property rights, encompassing various perspectives and applications

Reviews summary

Basic legal concepts

According to students, this course covers the basics of property and liability law. Learners say it is a good introduction to the subject and they appreciate the practical nature of the course. However, some criticize the course for being too basic. Overall, this course may be suitable for those seeking a foundational understanding of property and liability law.

Course is practical

"I appreciate the practical nature of the course."

Introductory course

"Nice"

"This course is a good introduction to the subject."

"It is a good introduction to the subject and I appreciate the practical nature of the course."

Course is too basic

"In a stoneage your property mean a thing;you determine the usage,you can sell your watch becos you own it.the social contract enable us to surrender our right to government who regulate and secure our property."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Property and Liability: An Introduction to Law and Economics with these activities:

Review Fundamental Accounting Concepts

Show steps

Refresh your understanding of foundational accounting principles to support your learning in this course.

Browse courses on Financial Statements

Show steps

Review notes, textbooks, or online resources on basic accounting concepts.
Focus on topics such as the accounting cycle, financial statements, and accounting principles.
Complete practice problems or quizzes to test your understanding.

Review Textbook Chapters

Show steps

Supplement lectures and reinforce theoretical concepts presented in the course.

View Financial Accounting Theory and Analysis: Text... on Amazon

Show steps

Read and understand assigned textbook chapters.
Summarize key concepts and principles.
Identify and clarify any areas of confusion.

Watch Online Accounting Tutorials

Show steps

Enhance understanding of specific accounting topics and gain additional perspectives.

Browse courses on Financial Statements

Show steps

Identify areas where you need additional support or clarification.
Search for reputable online accounting tutorials that cover these topics.
Watch and actively engage with the tutorials, taking notes and asking questions as needed.

Four other activities

Expand to see all activities and additional details

Show all seven activities

Join a Study Group

Show steps

Collaborate with peers to discuss concepts, solve problems, and enhance understanding through group learning.

Browse courses on Financial Statements

Show steps

Find or create a study group with classmates.
Establish regular meeting times and a communication platform.
Prepare for each meeting by reviewing materials and identifying topics for discussion.
Actively participate in discussions, share perspectives, and assist your peers.

Practice Accounting Problems

Show steps

Reinforce foundational accounting concepts and improve problem-solving skills.

Browse courses on Financial Statements

Show steps

Review fundamental accounting principles and concepts.
Identify and solve various types of accounting problems, covering topics like journal entries, financial statement preparation, and analysis.
Check your solutions and identify areas for improvement.

Prepare a Mock Financial Statement

Show steps

Apply accounting principles to create a realistic financial statement, solidifying your understanding of financial reporting.

Browse courses on Financial Statements

Show steps

Select a specific company or scenario for which you will prepare a financial statement.
Gather and analyze relevant financial data.
Prepare a complete and accurate financial statement, including all necessary components.
Review and evaluate your financial statement to identify areas for improvement.

Compile Course Materials

Show steps

Consolidate lecture notes, assignments, and resources throughout the course

Browse courses on Financial Statements

Show steps

Gather all course materials such as notes, assignments, and resources.
Organize the materials into logical sections or categories.
Review and edit the materials to ensure accuracy and completeness.

Career center

Learners who complete Property and Liability: An Introduction to Law and Economics will develop knowledge and skills that may be useful to these careers:

Property Manager

A Property Manager's responsibilities include managing residential and commercial real estate and overseeing all phases of property upkeep. An understanding of Property Law and an examination of Economic Principles will be essential for growth and success in the field. The course will familiarize you with legal and economic principles that govern property rights and the concept of liability. The coursework will help you understand why and how these principles are applied in real estate transactions and disputes.

See salaries and explore the career path for Property Manager

Real Estate Broker

A Real Estate Broker facilitates the buying and selling of property. This course will provide you with a strong foundation in property law and economics. It will help you understand the legal framework that governs real estate transactions, helping you to better serve your clients and navigate complex legal issues.

See salaries and explore the career path for Real Estate Broker

Real Estate Developer

Real Estate Developers oversee development projects from start to finish. This course will give you a solid understanding of the legal and economic principles that govern property development. It will help you to assess the feasibility of projects, negotiate contracts, and manage the legal risks associated with development.

See salaries and explore the career path for Real Estate Developer

Land Use Planner

Land Use Planners work with communities to develop plans for the use of land. This course will provide you with a strong foundation in the legal and economic principles that govern land use planning. It will help you to understand the different factors that must be considered when making land use decisions.

See salaries and explore the career path for Land Use Planner

Environmental Lawyer

Environmental Lawyers specialize in environmental law and advise clients on environmental compliance and litigation. This course will introduce you to the legal and economic principles that govern environmental law. It will help you to understand the different types of environmental laws and regulations and how they are enforced.

See salaries and explore the career path for Environmental Lawyer

Corporate Lawyer

Corporate Lawyers provide legal advice to businesses on various matters, including property law, contract law, and mergers and acquisitions. This course will help you develop a strong foundation in the legal and economic principles that govern corporate law. Whether you are working on a real estate transaction or a business contract, this course will provide valuable knowledge and skills.

See salaries and explore the career path for Corporate Lawyer

Tax Lawyer

Tax Lawyers specialize in tax law. They advise clients on tax planning, tax compliance, and tax controversies. This course will provide you with a strong foundation in the legal and economic principles that govern tax law, helping you navigate the complex and ever-changing tax landscape.

See salaries and explore the career path for Tax Lawyer

Estate Planning Attorney

Estate Planning Attorneys help clients with estate planning, including wills, trusts, and probate. This course will help you develop a strong foundation in the legal and economic principles governing estate planning. It will help you understand the different types of estate planning tools and how to use them to achieve your clients' goals.

See salaries and explore the career path for Estate Planning Attorney

Insurance Lawyer

Insurance Lawyers represent insurance companies in litigation and advise clients on insurance coverage issues. This course will provide you with a strong foundation in the legal and economic principles that govern insurance law. Whether you are working on an insurance coverage dispute or a personal injury case, this course will provide valuable knowledge and skills.

See salaries and explore the career path for Insurance Lawyer

Criminal Lawyer

Criminal Lawyers represent clients in criminal cases. This course will introduce you to the legal and economic principles that govern criminal law. It will help you to understand the different types of crimes and the defenses that can be raised against them.

See salaries and explore the career path for Criminal Lawyer

Civil Litigator

Civil Litigators represent clients in civil lawsuits. This course will provide you with a strong foundation in the legal and economic principles that govern civil litigation. It will help you to understand the different types of civil lawsuits and the strategies that can be used to win them.

See salaries and explore the career path for Civil Litigator

Judge

Judges preside over trials and make legal decisions. This course will provide you with a strong foundation in the legal and economic principles that govern the judicial system. This course will help you understand the different types of cases that come before the courts and the legal principles that are used to decide them.

See salaries and explore the career path for Judge

Law Professor

Law Professors teach law at universities and law schools. This course will provide you with a strong foundation in the legal and economic principles that govern the legal system. It will help you to understand the different types of law and the legal principles that are used to interpret them.

See salaries and explore the career path for Law Professor

Legal Journalist

Legal Journalists write about legal issues for newspapers, magazines, and websites. This course will provide you with a strong foundation in the legal and economic principles that govern the legal system. It will help you to understand the different types of law and the legal principles that are used to interpret them.

See salaries and explore the career path for Legal Journalist

Compliance Officer

Compliance Officers ensure that their organizations comply with applicable laws and regulations. This course will provide you with a strong foundation in the legal and economic principles that govern compliance. It will help you to understand the different types of laws and regulations that businesses must comply with and the strategies that can be used to ensure compliance.

See salaries and explore the career path for Compliance Officer