Term Papers

Law and Economics

Winter 2005

 The United States is on the move. People are leaving cities and urban areas to live the suburban and rural life. This paper deals with the issue of land development and a few things that a person on the move might encounter, such as new zoning rules, property rights, conservation laws and local restrictions. Development of businesses into new areas brings money and people, starting new areas of commerce and exchange. Numbers show that we are developing land at an increasing rate and will continue to do so..

“You can’t have an information economy in which all information is free. The major music labels would disappear; ditto the record stores that sell their CDs. The age of millionaire rock stars would be over; they would become as much a historical curiosity as the landed aristocracy is today." File-sharing is an extremely popular way to get music off the internet. By file-sharing, music lovers are able to get whatever music they want for free. This is a problem because when people get music for free, the creator of the music is not compensated for their music, this removes the incentive to create new works.

In the United States copyright law and digital technology are beginning to take center stage.  With the emergence of the internet and file sharing software, it is becoming more and more difficult to enforce the copyright law.  It is in everyone's best interest though, to put an end to this illegal activity. 

Patent protection has long been secured in the U.S. Constitution, supported by the belief that the monopolistic inefficiency patents create is less than the inefficiency that would result without patent protection. However, the patents described were originally meant for inventors, individuals or small groups of people, not for what so commonly exists in the modern day--corporations. In regards to corporations, patents create the heinous incentive for businesses to exploit resources and people to continue to receive above normal profit. The U.S. pharmaceutical industry exemplifies this. Through prescription drug patents, companies have, and still continue to, utilize their legal monopoly power to--conduct illusory and dishonest research;distribute harmful medications to the public through false advertising and avoidance of drug experimentation;continually raise the prices of their products well above marginal cost of production--creating economic, social, and moral inefficiencies greater than what would result without patent protection.

One of the most important current political issues is tort reform and its effects on corporations as well as normal citizens. Even though the supporters of tort reform claim that its main purpose is to reduce the cost of healthcare and also what the proponents of reform call “defensive medicine,” a more thorough investigation of the current situation of tort law as well as the interests behind tort reform demonstrate that the parties that are likely to benefit most from the reform are multibillion dollar corporations and insurance companies that insure physicians.

Both the number and size of medical malpractice suits have been growing recently.The size and amount of tort awards has reached an economically inefficient size and they continue to grow. These awards do more than deter bad doctors; they encourage the growth of defensive medicine and the departure of medical professionals from particular fields and geographic regions. These side effects create an incredible social loss for both consumers who cannot find doctors and doctors driven from their practices. With tort reform nationwide this trend can be reversed and the amount of awards and the distribution of doctors practicing can be returned to their optimal levels.

The "frivolous lawsuit" problem in our legal system is a myth. There is currently a wholesale war being waged on the tort law system in the interest of political power and money and the end result, if this so called tort reform is to win, will leave carnage on the economy as a whole, lawyers as a profession, the small-time tort plaintiff, and Democrats. The Republican Party and the Bush Administration are pushing forward with tort reform on claims that, "Lawyers are filing baseless suits against hospitals and doctors, that's just a plain fact," and that "They are doing it for a simple reason - they know the medical liability system is tilted in their favor" (CBS News 2005 para. 15). Proponents of tort reform argue that medical malpractice insurance costs are on the rise because of out of control court costs, lawyers get rich paydays at the expense of their injured clients, and that baseless lawsuits are harmful to the economy. In this paper, I will first discuss the idea of frivolous lawsuits and then I will address four specific claims of tort reformers: that medical costs are on the rise due to lawsuits, that a mandatory cap on punitive damages is beneficial for the tort system, that a reduction in lawyer fees will be beneficial for injured clients, and that lawsuits hurt the economy. In closing I will discuss the political motivations of tort reform proponents.

The reform of the tort system has become one of the most heated political debates in recent years. Frivolous law suits that result in large awards handed out by juries have caused the system to grow with large increases in the cost the system imposes upon the economy. Through statistical evidence and well researched information, this paper reveals how reforms will reduce costs and improve the economy through increased development and innovation in our nation's economy.

My paper is about the on-going tort reform of medical malpractice. I went about getting my information in two ways; first by putting myself in the eyes of someone who has been a victim of malpractice and not received the funding to "make them whole again", and then by trying to put myself in the shoes of a physician. There were a multitude of findings that came about in my research and very important for each side of the argument. It obviously depends on what standpoint you have as to what outlook you have on tort reform of medical malpractice. Physician's say that it is all because of the insurance companies as to why this change is so drastic, but patients are still going to need some type of reimbursement no matter what. There are some major ideas that I would like to point out, and then by clicking on the link you can read my paper for more in depth information

With antitrust claims, a full evaluation of every case is necessary from both a legal and economic standpoint to determine both the benefits and the costs of filing such a claim, in addition to determining whether or not filing an antitrust claim is in the best interest of the affected society. Nearly all individual cases occur on the margins of policy and are generally two-sided and hugely controversial. Many such cases have been mistaken in some degree, while the economic effects of antitrust also display some awkward imbalances that favor powerful, well-established firms. Dominant firms such as Microsoft are now largely free to set prices internally over their large shares of the market, while their smaller rivals can neither arrange to coordinate their price setting nor merge with each other. In this way, antitrust does seem to coddle the already-powerful, while attacking small business that would copy their dominant competitors. Once a firm has gained dominance, it is largely immune from antitrust actions, free to do things internally that lesser firms cannot.

Theorists have demonstrated that anticompetitive behavior can result in greater corporate profits, reduced technological innovation, and greater economic inequality between producers and consumers; however, theorists have yet to reach a consensus as to whether foreign entities affected by these phenomena and directly connected to U.S. commerce are protected by American antitrust legislation. A law and economics framework is useful for evaluating these laws and the extent to which they recognize the claims made by foreign plaintiffs. Following this analysis, it becomes apparent that economic efficiency regarding antitrust cases can only be achieved by implementing international antirust legislation such as the Foreign Trade Antitrust Improvements Act of 1982 (FTAIA) in order for the deterrence function of the legislation to be fulfilled.

This paper looks at the history of MLB and it's exemption from antitrust law. The basic theory behind monopolies and antitrust issues are reviewed first, in order to understand the context of the situation

During the late 19th and early 20th century, John D. Rockefeller built the Standard Oil Company into the most dominant corporation in U.S. history. Rockefeller dominated his competitors through several questionable business practices, including rebates from several main railroad companies, and by running his business at its most efficient levels. Rockefeller's business practices led to Standard Oil's control of virtually every aspect of the oil industry, from the time the oil was drilled from the ground until it was distributed to consumers. However, its domiance forced to the U.S. government to breakup Standard Oil when it ruled that the company had violated antitrust policies.

This paper analyzes the impact of the Trade Related Aspects of Intellectual Property Rights agreement on the pharmaceutical industry. Pharmaceutical corporations gain from this agreement, as their patents are protected throughout the world and for a longer period of time. However, while consumers may benefit from more drugs, this benefit will most likely be outweighed by the cost of increased drug prices in developing nations. In order for these nations to benefit from TRIPS, they must take advantage of the limited exceptions, such as compulsory licensing

It is undeniable that air pollution has been a growing concern for Americans since the passing of the Clean Air Act in 1970.  In examining this issue it is important to pay attention to the basic economic theories of rationality and self-interest in creating the negative externality of air pollution.  The focus of this paper is to examine and compare the effectiveness of regulations and incentives implemented by the U.S. government in working toward the elimination of global warming from automobile emissions.

In environmental law, liability can be an economically efficient method of controlling the release of pollution.  Under strict liability laws, damages are     awarded as a punishment for the behavior and as an incentive to keep others from taking the same actions.  In 1979, the City of Kalamazoo, Kalamazoo County     and Oshtemo Township all filed a lawsuit in which the Upjohn Company was found liable for most of the clean-up costs of a dumpsite located on KL Avenue, despite not being the only party that disposed of waste in the landfill.

Economic theory offers insights into how society values the arts. The demand for art reveals what type of consumer is spending on art while copyright law secures incentives for artists to create. Examining art as a financial investment can further explain why consumers are willing to invest time and money in works of art and can help determine the economic efficiency and social value of art and its power through market forces.

Recent Mergers in the wireless telecommunications industry will turn the market into an oligopoly. This will make the market very competitive but also push out any fray competitors. The market will also be up to how the merging firms integrate with one another

The Food and Drug Administration recently issued a warning telling the 23 major manufacturers of prohormone products to cease their production. The Act has significant implications on businesses that had previously produced and distributed such supplements. In addition, this bill has specific social consequences that will contribute to gains and losses in an economic sense. Proponents of the Act cite rising steroid use among teens as rationale for the implementation of the bill. Opponents cite the subsequent black markets that will form after this bill is applied.