Showing posts with the label Property Law

Gridlock Economy: When Too Much Ownership Kills the Market (Part 2)

In the first part of my post, we have discussed the difference between the Common and Anticommon Tragedy and also some examples that may be familiar to all of us. In reality, gridlock exists and it causes major problem to the society. So the one million dollar question is: "what can we do to solve the issue?" Step 1: Identifying Gridlocks Certain actions can be done, but first thing first, we need to identify those gridlocks before we can solve it. Gridlock is a waste to the society simply because it causes resources to be underused. What really troubles me is the fact that gridlock is mostly hidden. Have we ever thought that the cure of cancer might be already in front of our eyes today if not because of the fight between companies having small patents over genetic samples? Or do we realize how much our economy suffers because of there are too many robber barons along the road to investment, i.e. the regulators? In most cases, the Anticommon Tragedy is a pure human tragedy

Gridlock Economy: When Too Much Ownership Kills the Market (Part 1)

I am always happy to find new enlightening ideas, and I found them recently in a book titled " The Gridlock Economy: How Too Much Ownership Wrecks Markets, Stops Innovation, and Costs Lives ." This book made by Michael Heller, a Law Professor from Columbia Law School, introduces the concept of the tragedy of the anticommons , i.e. a condition where due to over fragmented ownership of a resource (i.e. ownership of a single resource is distributed within too many owners), such resource is highly underused to the extent that it cannot provide any benefits to its owners nor the society. It is the opposite of the tragedy of the commons (" Common Tragedy ") where a resource is overused to near extinction because no one have ownership over such resource and therefore no one cares about the sustainability of such resource. In Part 1 of this Article, we will discuss the basic concepts of the Common Tragedy and the Anticommon Tragedy. Later in Part 2, we will discuss fur