Book contents
- Frontmatter
- Contents
- Preface
- INTRODUCTION: INNOVATION IN LEGAL THINKING
- PART 1 PRINCIPLES
- 1 FROM FORMAL LOGIC TO NORMATIVE REASONING
- 2 SOCIAL WELFARE VERSUS MORAL PHILOSOPHY
- 3 FROM POLITICAL PHILOSOPHY TO GAME THEORY
- 4 THE IMPORTANCE OF DISTRIBUTION OF WEALTH
- 5 COASE AND LAW'S IRRELEVANCE
- 6 MORE FAILURES OF COASEAN IRRELEVANCE
- PART 2 METHODS
- APPENDIX A MEINHARD V. SALMON 249 N.Y. 458 (1928)
- APPENDIX B GLOSSARY
- APPENDIX C MATHEMATICA NOTEBOOKS
- Index
2 - SOCIAL WELFARE VERSUS MORAL PHILOSOPHY
Published online by Cambridge University Press: 24 July 2009
- Frontmatter
- Contents
- Preface
- INTRODUCTION: INNOVATION IN LEGAL THINKING
- PART 1 PRINCIPLES
- 1 FROM FORMAL LOGIC TO NORMATIVE REASONING
- 2 SOCIAL WELFARE VERSUS MORAL PHILOSOPHY
- 3 FROM POLITICAL PHILOSOPHY TO GAME THEORY
- 4 THE IMPORTANCE OF DISTRIBUTION OF WEALTH
- 5 COASE AND LAW'S IRRELEVANCE
- 6 MORE FAILURES OF COASEAN IRRELEVANCE
- PART 2 METHODS
- APPENDIX A MEINHARD V. SALMON 249 N.Y. 458 (1928)
- APPENDIX B GLOSSARY
- APPENDIX C MATHEMATICA NOTEBOOKS
- Index
Summary
Many scholars object to economic analysis of law because of a belief in morality and moral philosophy. This chapter compares moral philosophy with law and economics as tools for interpreting and producing legal rules. This juxtaposition of moral philosophy and economics also reveals that economic analysis does take into account moral preferences.
The setting of Meinhard v. Salmon can illustrate the difference between economic and moral reasoning about law. Salmon received a lucrative offer from Gerry, a business acquaintance. The offer could have expanded Salmon's business. Unbeknownst to Gerry, Salmon's business, which was the reason for their acquaintance, had a secret partner, Meinhard. If Gerry knew that Salmon operated in two capacities, as an individual and as a member of a partnership, then Gerry may have specified to which of the two he addressed his offer. Meinhard, the invisible partner, claimed the offer should be treated as made to the partnership. The litigation that Meinhard started eventually reached the highest court of the jurisdiction and the famous American judge, Benjamin Cardozo, and his colleague Andrews, who is almost equally famous for his vocal dissenting opinions. Previously established law did not answer the question directly. The study of moral philosophy would be of little assistance to Cardozo and his colleagues in deciding this novel question of law. The desirable interpretation is found by using economic analysis of law.
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- Chapter
- Information
- Principles and Methods of Law and EconomicsEnhancing Normative Analysis, pp. 20 - 36Publisher: Cambridge University PressPrint publication year: 2005