Functional Property, Real Justice
David Schmidtz

Mere Liberty: no duty to refrain from using

Mere Liberty: no duty to refrain from using
Correlative Duty: not to use without permission

Mere Liberty: no duty to refrain from using
Correlative Duty: not to use without permission
Full-blooded Right: liberty to use + liberty to forbid use by others
See Wesley Hohfeld

3 Ways of Giving Property Rights Their Due
See Calabresi & Melamed

3 Ways of Giving Property Rights Their Due
PROPERTY Rule: others can’t use without consent
See Calabresi & Melamed

3 Ways of Giving Property Rights Their Due
PROPERTY Rule: others can’t use without consent
LIABILITY Rule: other can’t use without compensation
See Calabresi & Melamed

3 Ways of Giving Property Rights Their Due
PROPERTY Rule: others can’t use without consent
LIABILITY Rule: other can’t use without compensation
INALIENABILITY Rule: can’t use at all (or at least can’t sell
See Calabresi & Melamed

Traffic Management
Commercial Traffic
Production for profit is production for use.

William Blackstone called property the
“sole and despotic dominion which one man claims and exercises over the external things of the world, in total exclusion of the right of any other individual in the universe.”

But rights in Anglo-American law have always been hedged with restrictions:
Easements
Covenants
Nuisance laws
Zoning laws
Regulatory statutes
Custom

ad coelem

What does the right to say no entail?

What does the right to say no entail?
What does it need to entail?

Justice: the Wrong Way

Justice: the Right Way

When a System of Property is Working :

When a System of Property is Working:
It puts people in position to produce.

When a System of Property is Working:
It puts people in position to produce.
It puts producers in position to trade.

When a System of Property is Working:
It puts people in position to produce.
It puts producers in position to trade.
It fosters creative destruction.

When a System of Property is Working:
It puts people in position to produce.
It puts producers in position to trade.
It fosters creative destruction.
It limits externalities.

When a System of Property is Working:
It puts people in position to produce.
It puts producers in position to trade.
It fosters creative destruction.
It limits externalities.
It minimizes transaction cost.

When a System of Property is Working:
It puts people in position to produce.
It puts producers in position to trade.
It fosters creative destruction.
It limits externalities.
It minimizes transaction cost.
It lets people grow their businesses.