The Evolution of Common Law and Transaction Costs

This chapter explores the interplay between transaction costs and the legal frameworks that aim to minimize them, particularly focusing on the contrast between common law and statutory legislation. It discusses Bruno Leoni's critique of written laws and promotes a legal system rooted in tradition and social interactions, advocating for a nuanced understanding of legal certainty. The chapter highlights the role of judges in shaping law through their decisions, illustrating how judicial practices evolve to create expectations that reduce disputes.