Econo-Legal Studies: Thinking Through the Lenses of Economics and Law

Preface to the English Edition
Preface to the Japanese Edition
Contents
Editors and Contributors
About the Editors
Contributors
1 Introduction to Econo-Legal Studies: The Dual Views of Economics and Law
1.1 Introduction
1.1.1 Aims of This Book and This Chapter
1.1.2 Historical Background
1.2 Economics and Law in Opposition: An Example
1.2.1 When and How Does the Market for Real Estate Leasing Function?
1.2.2 The Purpose of the Law: Benefit Society as a Whole or Provide Justice in Specific Transactions?
1.3 The Pursuit of Value in Economics and Law
1.3.1 The Value Pursued by Economics
1.3.2 The Value Pursued by the Law and Legal Studies
1.3.3 Economics and Law: Similarities and Differences
1.4 Contents of This Book
References
2 The Right to Own Things: Intellectual Property Law
2.1 Outline and Significance of Ownership Systems
2.1.1 What is Ownership?
2.1.2 History of and Reasons for the Existence of Ownership Systems
2.2 Outline of Intellectual Property Law Systems
2.2.1 What is Intellectual Property?
2.2.2 What Are Intellectual Property Laws?
2.2.3 Why Do the Patent Act and the Copyright Act Exist?
2.2.4 Characteristics of Intellectual Property Laws
2.3 Economic Analysis of the Patent System
2.3.1 Knowledge as a Public Good
2.3.2 Benefits of Patents
2.3.3 Social Costs of Patents
2.3.4 Patents as an Appropriability Mechanism
2.3.5 Pro-Patent Policy: The Case of Software Patents
2.4 Economic Analysis of Copyright Protections
2.4.1 Extensions of Copyright Protections
2.4.2 Unlawful Downloads of Digital Content
References
3 The Rules Governing the Relationships Among a Company’s Stakeholders: Company Law
3.1 Introduction
3.1.1 What is a Company?
3.1.2 The Underlying Outlook of the Companies Act
3.1.3 Typical Conflicts
3.1.4 Economic Positioning
3.2 Conflicts of Interest Between Directors and Companies
3.2.1 General Remarks
3.2.2 Conflicting Interest Transactions
3.2.3 Derivative Lawsuits and the Business Judgment Rule
3.2.4 Remuneration Regulations
3.3 Protection of Minority Shareholders
3.3.1 Exploitation of Minority Shareholders by Controlling Shareholders
3.3.2 Legal Systems for the Abuse of Majority Votes
3.3.3 Economic Implications of Protecting Minority Shareholders
3.4 Conclusion
References
4 The Rules for Fair Competition: Antimonopoly Law
4.1 Summary and Purposes of Antimonopoly Law
4.1.1 The Antimonopoly Act
4.1.2 Defining Purposes of Antimonopoly Law
4.1.3 Economic Analysis of the Antimonopoly Act
4.2 Resale Price Maintenance
4.2.1 Resale Price Maintenance Explained
4.2.2 Legal Background
4.2.3 Economics of RPM
4.2.4 Supreme Court Decision on RPM: The Wakodo Case
4.2.5 Justifiable Cause for RPM: The Economic Case
4.2.6 Exemptions to RPM Laws
4.2.7 RPM of Books Overseas
4.3 Tie-In Sales
4.3.1 What is Tying?
4.3.2 An Economic Assessment of Tying
4.3.3 Explanations and Precedents of the Antimonopoly Act: Acts that Constitute Tying
4.3.4 Explanations and Precedents of the Antimonopoly Act: (Unjustly) Impeding Fair Competition
4.4 Conclusion
References
5 Determining the Desirable Rules for the Labor Market: Labor Law
5.1 Introduction
5.1.1 What is Labor Law?
5.1.2 Labor Law Systems
5.1.3 The Need for Rules Governing the Labor Market
5.2 Minimum Wage Systems as Measures to Address Poverty
5.2.1 The Minimum Wage Act
5.2.2 Law and Economics of the Minimum Wage System
5.2.3 Why Does the Minimum Wage Exist?
5.3 Employment Protection Legislation and the Labor Market
5.3.1 Definition of Dismissal
5.3.2 Impact of Dismissal Regulations
5.3.3 Why Do Dismissal Regulations Exist?
5.4 Conclusion
References
6 Equity and Efficiency in the Safety Net: Social Security Law
6.1 An Outline of the Social Security System and Its Significance
6.1.1 Why is Social Security Necessary?
6.1.2 Risk Diversification and Risk Mitigation
6.1.3 Minimum Living Standard
6.1.4 The Social Security System
6.1.5 The Administrative Bodies that Implement Social Security: The Distribution of Competences Between National and Local Governments
6.1.6 Social Security Benefits and Financial Resources
6.1.7 The Insurance and Welfare Principles
6.1.8 Social Security and Income Redistribution
6.1.9 Legal Nature of Social Security Benefits and the Settlement of Disputes
6.2 Principles and Roles of Social Insurance
6.2.1 Risk-Averse Individuals and Expected Utility
6.2.2 The Significance of Social Insurance
6.2.3 Principles of Social Insurance
6.2.4 Justifications for Compulsory Enrollment
6.2.5 The Issues of Forced Enrollment and Moral Hazard
6.3 Structure of and Issues with the Current System
6.3.1 Structure of Public Pensions
6.3.2 Public Pension Sustainability and Intergenerational Inequality
6.3.3 Generational Accounting
6.3.4 Structures of Medical and Long-Term (Old-Age Dependency) Care Insurance
6.3.5 Problems with Health and Long-Term Care Insurance
6.3.6 The Structure of Public Assistance (or Livelihood Protection)
6.3.7 Problems with Public Assistance and Optimal Low-Income Support Measures from an Economics Perspective
6.4 Conclusion
References
7 When is Breaking a Promise Allowed? Contract Law
7.1 Introduction
7.2 Legal Theories of Remedies for Breaches of Contract: A Comparative Study of Japanese and English Law
7.2.1 A Breach and Its Remedies
7.2.2 Right to Demand Performance
7.2.3 Right to Claim Damages
7.2.4 Right to Avoid Contracts
7.2.5 Underlying Concepts of Contract Law: The Grounds and Scope of Binding Power
7.3 Suitability of Remedy Methods: Analysis of Two Cases
7.3.1 Two Typical Cases of Buying and Selling
7.3.2 Obligation of a Buyer Who Can Use the Market to Purchase a Substitute Product
7.3.3 Logic for Legitimizing the Substitute Transaction Obligation
7.3.4 Obligation to Mitigate Damages as the Market Use Norm
7.3.5 Explanation from Historical Examples
7.4 Contract Law: An Economic Approach
7.4.1 Role of Contract Law
7.4.2 Example 1: Vehicle Contract
7.4.3 Example 2: The Painting Contract
7.5 Conclusion
References
8 The Meaning of Compensating Damages: Tort Law
8.1 Introduction
8.1.1 What is Tort Law?
8.1.2 This Chapter’s Objective
8.2 Summary of the Tort System
8.3 Legal and Economic Perspectives on Tort Law
8.3.1 Legal Perspectives
8.3.2 Perspective of Economics
8.3.3 Legal and Economic Perspectives
8.4 Principle of Negligence Liability
8.4.1 What is Negligence?
8.4.2 Why is Liability for Negligence a Principle?
8.5 Conclusion
Appendix: Optimal Deterrence in the Case of Bilateral Precaution
References
9 Appropriate Rules for Protecting the Environment: Environmental Law
9.1 Issues Discussed in This Chapter
9.2 Waste Management and Recycling
9.2.1 Economic Approach to Waste Management
9.2.2 Economic and Legal Approaches to Recycling: The Recycling of Home Appliances
9.2.3 Designing Recycling Law Systems
9.2.4 Evaluating the Home Appliance Recycling Law
9.3 Landscapes
9.3.1 An Economics Approach to Landscape Problems
9.3.2 Landscape Issues and the Legal System
9.3.3 The Law and Economics of Landscape Problems
9.4 Conclusion
References
10 Appendix: Elements of Economics
10.1 Incentives and Rational Choice
10.2 Preferences, Expected Utility, and Attitudes Toward Risk
10.3 Demand and Supply and Market Efficiency
10.4 Strategic-Form Games and Nash Equilibria
10.5 Extensive-Form Games and Subgame Perfect Equilibria
10.6 Externalities
10.7 Public Goods and the Tragedy of the Commons
10.8 Monopolies and Oligopolies
10.9 Asymmetric Information: Adverse Selection, Moral Hazard, and the Hold-Up Problem
10.10 Discounted Present Value
Index