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Selling and abandoning legal rights

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  • Hylton, Keith N.

Abstract

Legal rights impose concomitant legal burdens. This paper considers the valuation and disposition of legal rights, and legal burdens, when courts cannot be relied upon to perfectly enforce rights. Because courts do not perfectly enforce rights, victims suffer some loss in the value of their rights depending on the degree of underenforcement. The welfare implications of trading away and abandoning rights are examined. Victims do not necessarily trade away rights when and only when such trade is socially desirable. Relatively pessimistic victims (who believe their rights are weaker than injurers do) trade away rights too cheaply. Extremely pessimistic victims abandon their rights. Implications for the enforceability of waivers, discrimination in courts, and legal ethics are discussed.

Suggested Citation

  • Hylton, Keith N., 2024. "Selling and abandoning legal rights," International Review of Law and Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:irlaec:v:80:y:2024:i:c:s0144818824000395
    DOI: 10.1016/j.irle.2024.106219
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    References listed on IDEAS

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    1. William M. Landes, 1974. "An Economic Analysis of the Courts," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 164-214, National Bureau of Economic Research, Inc.
    2. Keith N. Hylton & Sungjoon Cho, 2010. "The Economics of Injunctive and Reverse Settlements," American Law and Economics Review, American Law and Economics Association, vol. 12(1), pages 181-203.
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    4. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    5. Cooter, Robert D & Rubinfeld, Daniel L, 1994. "An Economic Model of Legal Discovery," The Journal of Legal Studies, University of Chicago Press, vol. 23(1), pages 435-463, January.
    6. Spier, Kathryn E, 1997. "A Note on the Divergence between the Private and the Social Motive to Settle under a Negligence Rule," The Journal of Legal Studies, University of Chicago Press, vol. 26(2), pages 613-621, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Legal rights; Legal burdens; Waiver; Discrimination; Lawyer conflicts of interest; Optimal enforcement of rights;
    All these keywords.

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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