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Solomon's Knot by Robert D. Cooter, Hans-Bernd Schäfer

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Chapter 6

Keeping What You Make—Property Law

A Brazilian landowner refuses to lease farmland for fear that the tenants will stay permanently without paying rent. A Chinese filmmaker foregoes making a movie for home viewing for fear that graduate students will circulate it freely on the Internet. Ecuadorian investors decline to buy stock issued by a profitable shrimp farm for fear that the managers will steal their money. What do these three examples have in common? In each case the fear that wealth will be taken stops someone from making it. Brazilian landowners need protection from deadbeat tenants in order to make land available for renting. Chinese filmmakers need protection from student-pirates in order to make films profitable. And Ecuadorian ...

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