Economics 4450/6450 - Law and Economics
David B. Mustard
Exam Grades 

+++++++++++++++++++++++++++++++++++++++++++++++++++

Ask two questions:
1. What did I miss?
2. Why did I miss the question?

The summary statistics for Midterm 1 (Spring 2013) are:

               Points        %
Min.            23         34.3
Median       56.5       84.3
Ave.            57.5       85.8
Max.            67         100
Number       40         40

Grades are calculated out of 68 points as the basis.

Grade  # Score   % Score
A+         68+          >100.0 %           6 (3 perfect scores)
A           63-67       92.6-98.5 %       9
A-          60-62       87.8-89.8 %       2
B+         58-59       85.2-86.8 %        1
B           55-57       80.9-83.8 %        5
B-          54            79.4 %               3
C+         53           77.9 %                1
C           48-52      70.6-76.5 %         5
C-          47           69.1 %                1
D           41-45       60.3-66.2 %        4
F           30-34       44.1-50.0             3
 

Short Answer
1. Property/Coase Theorem (2/12 and 2/14; example out of Chap. 5 pages 85-86 of the text, but with different names and values)
    a. Efficient = filters are installed on homes (because it is the lowest cost solution: $500,000 vs. $700,000 and &800,000). Efficiency is not affected by PR or TC.
    b. 1. Farm has PR: Homes install filters
    b. 2. Homes have PR: Farm installs building  
    c. 1. Farm has PR: Homes install filters
    c. 2. Homes have PR: Farm buys PR from homes for $500,000=$700,000 and homes install filters  
    d. Clear statement and explanation of Coase Theorem.
    Notes: what does efficient mean? Answer the question that is asked (especially 1d, which asked about property rights assignment and some gave answers that discussed all sorts of things but property rights assignment)
    Range: 7-15 (many 15s)

2. Medical malpractice case (Notes: 1/24 and 1/29)
    Notes: 19 of 25 scored 8 of 8.
    Range: 4-10 (many 10s and 9s). Second easiest question on test.

3. Common Law vs. Civil Law (Notes 1/10 and Table 1 and Friedman reading--"Intermezzo")
    Notes: what does efficient mean?
    Range: 6-10 (many 10s and 9s). Easiest question on test.

4. Copyright Infringement (Notes 2/14 and 2/19)
    plaintiff must show all elements and no AD: own, infringe (direct--scope and nature), harm
    Note: define terms--do not use the same term in the definition (infringe)
       In answering, use evidence from the case

5. Property
    a. Injunctions (Property Rule) vs. Damages (Liability Rule); ex ante vs. ex post (Notes 2/5)
    b. T costs; Calebresi-Melamed (Notes 2/5)
    c. Private vs. Public: good examples from reading (Greece, Native Americans) (Notes 1/25)

Summary:
    1. Answer the question that is asked--especially 1 d.
    2. Use legal terms (injunction, compensatory and punitive damages, own, infringe, and harm, etc.)
    3. Be internally consistent (especially #1)

+++++++++++++++++++++++++++++++++++++++++++++++++++

The summary statistics for Midterm 2 (Spring 2013) are:

               Points        %
Min.            39         45.7
Median       57.4       72.8
Ave.           57.5       73.0
Max.           67         100
Number      40         40

Grade  # Score   % Score
A+         66-67   99-100%
A           62-65    93-97 %
A-          60-61    89-91 %
B+         58-59    86-88  %
B           82-85    82-85  %
B-          53-54    79-81  %
C+         52           77  %
C           50-51    74-76 %
D           39-40    58-60 %
F            23          34 %

Many students improved their scores significantly. 11 students improved their scores by more than 10 percentage points, including six students over 20 percentage points and two students over 25 percentage points. Many of these students came by and worked with me between the two midterms.

Short Answer

1. Regulation (Baptists v. Bootleggers--enact prohibitions to limit gambling just like the original B v. B enacted prohibitions to limit alchohol)
    a. Baptists: limit gambling for moral reasons. (2 people)
        Bootleggers: limit gambling for support the regulation for economic reasons. (3 people)
    The combination of these two groups is sufficient for a majority (5) on the 9 person committee. People or groups that have different objectives support a policy.
    b. Recommend: 1) limiting gambling to what is there now; 2) Raise barriers to entry; 3) Different support for different types of gambling--support for large tourism based casinos, but criticize other forms of gambling. 4) Restricting gambling by geographic area.
    Dates: 3/21-3/26.
    Notes: This pattern of regulations should sound familiar--we have done many cases like this starting about the second week of classes.
    Do not be vague. Some said this is like Baptists and Bootleggers, but never identified either the Baptists or Bootleggers.

2. Harold
    a. Wrongful death tort.
    b. Elements: List and Define.
    c. Plaintiff: must show all 3 elements. Proper equipment; proper monitoring and forecasting.
    d. Defense: fight at least one element (negligence and cause). Lack of lifeboat made no difference in the outcome.
    e. Decision: full credit was given for various answers as long as they were argued well.
    f. Contributory and Comparative--See table 7
    g. Be consistent with the rest of one's answer
    Dates: 4/2-4/9
    Notes: 1) About 6 people do not know what a cause of action is and how it differs from an element.
        2) Don't just say the defense is negligent. How is the defense negligent? What could they have done to avoid the accident? (Not go out on the water, have a life boat, train crew, etc.)
        3) Answer the question: define the elements--many listed, restated, but did not define.
Repeating the word is not defining.
        4) Argue on the basis of elements. Some people listed and defined elements and then argued other things.

3. Trademarks
    a. Descriptive--must have secondary meaning
    b. Arbitrary
    c. Fanciful
    d. Suggestive (Arbitrary)
   
Dates: 3/5-3/7
    Notes: IP vs. TM

4. IP
    a. TMs decrease search costs.
    b. Decreasing search costs increases search, decreases ave. price and the variance of prices, and increase quality of products. Also, search costs reduce barriers to entry, increase competition, etc.
    Dates:
    Notes:
        1) Not asking how IP law affects all the other factors--just how search costs affect the other factors.
        2) TM vs. other forms of IP. About 5 people explored other forms of IP.

Multiple Choice

1. IP (Dates 2/14-3/21)

2. Regulations (Dates 3/21-3/26)

Total MC
    8 points       23
    4 points       13
    0 points       4

Total      40 students

Summary

Ask two questions:
1. What did I miss?
2. Why did I miss the question?

Answer the questions that are asked. Conversely, don't answer questions that are not asked--or at least wait until you have answered the ones you are supposed to. Examples: define elements (#2), innovation (#3), not other concepts.