| Popis: |
Coase’s theorem stated that economic actors can solve their own external problems arise between them. Apart from the distribution rights at first, parties involved are always likely to reach a mutualism agreement which is an efficient solution. If they cannot finish it by themselves then the case will be brought into the court so they have reduced efficiency in their business. By putting a case in court, the more expensive transaction costs will come up. Many costs are discarded for judicial legal fees, hiring lawyers, transportation for going to the court, and judicial proceedings time. The court is also another form of state intervention that inhibits the economic growth and natural competition in the market. The logic used by most of Judges is not economic logic in deciding a business cases. Most of them only use legal consideration on the basis of regulatory legislation and evidences in a trial process and avoid economic logic in deciding a case. They only use legal reasoning based on the philosophy of legal positivism. Economic logic should be used in deciding a business case with accounting consideration to find the most win-win solution for both parties based on market mechanisms. |
