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On Legal Cooperation and the Dynamics of Legal Convergence

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Listed:
  • Bertrand Crettez
  • Bruno Deffains
  • Olivier Musy

Abstract

In this paper, we study the dynamics of legal convergence and the comparison between the different instruments of legal convergence based on cooperative strategies (i.e., harmonization and unification) or not. To study these questions we use a model with two nation-states which is inspired in part by that used in Carbonara and Parisi (2008) where preferences of each nation-state are such that it is costly to change the law, but it is also costly to have a different legal system from the other nation-state. We show that legal unification could be achieved in the long-run through small step by step changes despite the existence of huge harmonization costs in the short run. We also show that legal cooperation is not always necessary to achieve legal convergence.

Suggested Citation

  • Bertrand Crettez & Bruno Deffains & Olivier Musy, 2010. "On Legal Cooperation and the Dynamics of Legal Convergence," EconomiX Working Papers 2010-17, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2010-17
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    References listed on IDEAS

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    1. John Armour & Simon Deakin & Priya Lele & Mathias Siems, 2009. "How Do Legal Rules Evolve? Evidence from a cross-country Comparison of Shareholder, Creditor and Worker Protection," Working Papers wp382, Centre for Business Research, University of Cambridge.
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    5. Baniak Andrzej & Grajzl Peter, 2011. "Interjurisdictional Linkages and the Scope for Interventionist Legal Harmonization," Review of Law & Economics, De Gruyter, vol. 7(2), pages 405-434, December.
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    11. John Armour & Simon Deakin & Prabirjit Sarkar & Mathias Siems & Ajit Singh, 2009. "Shareholder Protection and Stock Market Development: An Empirical Test of the Legal Origins Hypothesis," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 6(2), pages 343-380, June.
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    1. Baniak Andrzej & Grajzl Peter, 2011. "Interjurisdictional Linkages and the Scope for Interventionist Legal Harmonization," Review of Law & Economics, De Gruyter, vol. 7(2), pages 405-434, December.

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    More about this item

    Keywords

    Law-and-Economics; Legal Convergence; Legal harmonization; Legal Uniformization;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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