UNIVERSITY OF CANTERBURY
Department of Economics
AN INTRODUCTION TO THE ECONOMICS OF
PROPERTY RIGHTS
Professor Douglas Allen
Office hours: Announced first week of class.
The economics of property rights provides the theoretical underpinning to at
least three branches of economics: law and economics, new institutional economics,
and the new economic history. In addition, key ideas in this area are found in
information economics, modern theories of the firm, and contract theory. This
course is a survey introduction to this broad research field and is intended to be a
“mile wide and an inch deep.” There will be a great deal of reading, the emphasis
will be theoretical, and a large numbers of topics will be touched on. I will try to
cover one paper per class.
Students are expected to have read all work before class and be prepared to
discuss each paper. If you can come to the first class having read at least the
first six sections of the Coase paper, that would be appreciated. Grades will be
determined by participation 30% and a final exam 70%.
The textbook for the course is:
Allen, D.W. The Institutional Revolution: Measurement and the Economic
Emergence of the Modern World (Chicago: University of Chicago Press, 2012).
The book is available on Amazon.
Most of the article readings are available at:
http://www.sfu.ca/˜ allen/newzealand.html
Some journals do not allow their articles to be put on websites. Therefore, where
indicated you will need to obtain the articles from the university library, through
JSTOR, or some other electronic means.
COURSE OUTLINE
Week 1. The Coase Theorem and Transaction Costs
a. Coase “The Problem of Social Cost”
b. Allen “Transaction Costs” Encyclopedia of Law and Economics
Week 2. Public Domain and Markets
Monday:
a. Barzel “Rationing by Waiting”
Wednesday:
a. Klein and Leffler “The Role of Market Performance in Assuring Quality”
b. Hall “Market Enforced Information Asymmetry” Economic Inquiry 1986 (not
available on-line)
Week 3. Establishing Property Rights
Monday:
a. Lueck “The Rule of First Possession and the Design of the Law.”
Wednesday:
a. Demsetz “Towards a Theory of Property Rights”
b. Allen “The Rhino’s Horn.”
Week 4. Contract Choice and the State
Monday:
a. Allen and Lueck “Contract Choice”
Wednesday:
a. Andolfatto “ A Theory of Inalienable Property Rights.”
Week 5. The Institutional Revolution
Monday: Aristocrats and Dueling
a. Allen Chapters 3 and 4.
Wednesday: The British Army and Navy
a. Allen Chapters 5 and 6.
Week 6. Property Rights and Marriage
Monday: Two Marriage Issues.
a. Allen “The Choice of Spouse.”
b. Botticini and Siow “Why Doweries?”
Wednesday: Property Rights and Same Sex Marriage
a. Allen, “Who Should Be Allowed Into the Marriage Franchise”
b. Allen “The Gains From Marriage: Differences in Sexual Orientation.”