Abstract
This paper is an inquiry into the true significance of the assumption of law neutrality in property rights theory, that is to say the assumption that the initial legal allocation of property rights is irrelevant if transaction costs are absent. It shows that it stems from an interpretation of Coase (1960) and that it is part of a process of disentanglement of the legal-economic nexus. Next, it investigates what is referred to as the differentiation between ‘who’ (subject to law) and ‘what’ (subject to economics). This differentiation results in the neutralisation of the law, which is both artificial and unsatisfactory. Finally, it proposes a reconnection of ‘who’ and ‘what’ to restore the true meaning and usefulness of the legal-economic nexus. The infiltration of the Mafia in legitimate businesses is taken as an example.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
