Efficient priority rules under default: the case of traditio versus contract principle
| Autor: | Claes Martinson, Jens Andreasson, Shubhashis Gangopadhyay, Wolfgang Faber, Stefan Sjögren |
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| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Bankruptcy
Economics and Econometrics business.industry Commercial law Distribution (economics) Transfer of ownership Delivery model Competitive advantage Microeconomics Traditio principle European integration Economics Market price Business and International Management business Priority rules Law Database transaction Public finance |
| Zdroj: | European Journal of Law and Economics, 51(1), 97-128. SPRINGER |
| ISSN: | 0929-1261 |
| Popis: | We investigate the economic consequences of the traditio and the contract principle—differing in how they determine the priority rights for an item sold but not delivered. Our results suggest that the two principles are equivalent in terms of the net utilities enjoyed by involved actors. For example, a lower price paid for a forward transaction under a traditio principle can be compensated by better credit terms, implying there is no competitive advantage for either the seller or buyer under any principle. We demonstrate how market prices, incorrectly used, may misleadingly favour a contract principle, and discuss how fraudulent behaviour better supports a traditio regime. We also contribute to the legal discussion on priority regimes of undelivered items basing our discussion on bankruptcy priority laws instead of distribution of ownership. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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