Honors Thesis Archive
| Author | Savannah Fox |
|---|---|
| Title | Abraham Lincoln, Contract Disputes, and Remedying Legal Inefficiencies |
| Department | Economics |
| Advisor | Dr. David Wishart, Dr. James Allan, Dr. Fred Tiffany |
| Year | 2015 |
| Honors | University Honors |
| Full Text | View Thesis (354 KB) |
| Abstract | The objective of this project is to combine the preceding research in the fields of the Coase theorem, game theory, contract law, and the history of Abraham Lincoln to expose the intentions of his career as an attorney. Through this sample of Lincoln’s contract cases found on the Second Edition of the Law Practice of Abraham Lincoln database, it becomes clear that the legal system is associated with high transactions costs. The high cost of taking a case to trial can, and should be, avoided through bargaining and out of court settlements. It is important to use Lincoln as the center of this research because his cases show signs of an economist’s perspective. There are, of course, cases that highlight the economic inefficiency associated with trials, but there are also cases in which Lincoln, as the attorney, employs techniques consistent with cooperative game theory that lower these transaction costs in a way that would follow the Coase theorem. Because Coase’s original theory is representative of a fictional world with no transaction costs, I argue that a normative application of the Coase theorem, through the practice of specific performance as a remedy, can be employed to identify ways the legal system can be changed to reduce transaction costs. Lincoln once wrote in his notes for a lecture, “Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser---in fees, expenses, and waste of time. As a peacemaker the lawyer has a superior opportunity of being a good man. There will still be business enough.” This paper will prove Lincoln’s intentions to limit transaction costs by applying contemporary economic theories to this historic account. |
Return to Main Honors Thesis Archive Page
Back