By Gerrit De Geest (ed.)
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Additional info for Contract Law and Economics
Cooter and Ulen take the information concerning the intended building of a new road as an example of redistributive information, but it may be productive as well. If the owner of land adjacent to the road uses it for a purely residential purpose, the new highway will reduce his subjective value on the land, because of noise generated by passing vehicles. The sooner he has the information, the sooner he will be able to sell the land to a person who values it more highly and buy a new home. Thus, information of this kind can speed up the process of resource allocation to the highest value user (Eisenberg, 2003a, pp.
2003–2004), ‘Contracts Only with Consent’, University of Pennsylvania Law Review, 152. J. (1983), ‘The Emergence of Promissory Estoppel as an Independent Theory of Recovery’, Rutgers Law Review, 35, 472. A. ’ Yale Law Journal, 112. Schwartz, A. ), The New Palgrave Dictionary of Economics and the Law, Palgrave Macmillan, vol. 2, p. 277. E. (2007), ‘Precontractual Liability and Preliminary Agreements’, Harvard Law Review, 120, 661. E. (2003), ‘A Theory of Self-enforcing Indefinite Agreements’, Columbia Law Review, 103.
Thus, sellers of above-average brands are incentivised to reveal the special qualities or features of their goods in order to distinguish them from below-average competitors. Given these disclosures, buyers might begin to perceive that the average value of non-disclosing sellers is lower. This perception would in turn create a new incentive for those of the remaining non-disclosing seller whose goods are above the average to disclose their advantages. , 1981). Nonetheless, the application of this argument is limited.