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Sometimes the appellate court upheld the trial court’s decision, sometimes it didn’t. Combining those cases and a few other judgments, he concluded that there’s no consistency in the court’s rulings and, therefore, there’s no basis to enforce the Google policy on the basis of a court order.”
So, the Supreme Court has ruled (Apple vs. Samsung) that the jury’s verdict was correct, therefore Samsung should be sued for $7 billion.
But, how much of the $7B should he pay, if at all? Isn’t it a bit like a gambler who is betting on red (the jury’s ruling) and choosing to keep every red and swap every black for the next week? While he’s getting 4/5 for red and 1/5 black, the rest is unpaid.
How should you solve this problem – is there a systematic way to figure out the amount of $7B, which the loser should pay and what part of it should go to the winner?
A:
This is a question for a class of economists known as economists of law and economics, or EoLE. EoLE economists attempt to use economic theories to analyze the law.
A second class of economists, called institutional economics or IE, analyze why rules are rules and why people obey them. There are a number of academic papers on this that I can recommend.
Economics of Law and Economics (Law & Economics Resources, 2006), edited by Micah DeFreitas, Matt Ackerson, Mark Hanly, A.T. Kearney Inc. (2002)
“Wealth, Welfare and Law” (The Journal of Law, Economics & Organization, 2000), Edwin C. Harcourt, University of Michigan Law School.
“The Welfare of the People and the Law” (American Journal of Economics & Sociology, 2000), by Arthur E. McGraw, University of Minnesota Law School.
“The Economics of Law and Economics” (Economics of Law & Society, 2000), edited by William R. Hawkins, University of Wisconsin – Madison.
“Welfare Consequences of Legal Change” (Economics of Law and Society, 1997), edited by Donald W. English, University of Michigan Law School.
These are not the only class of EoLE economists. There are many other.
A:
This is a very complex topic and would take
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