Security in ones’ property has been a fundamental tenant of our society since its inception. The Fifth Amendment enumerates this vital right and has served as a refuge against the government unjustly interfering with individual property rights for centuries. But, as judicial interpretation develops over time, a startling trend has emerged that could profoundly shape the future of the taking of private lands by the government. The landmark case of Kelo v. City of New London marked a radical shift in what could be construed as a legitimate taking based on a state’s police power. (1) This ruling has resulted in many states drafting new legislation in an attempt to temper the controversial ruling. (2) Regardless of how the legislature approaches the issue, it is clear that the takings landscape has fundamentally changed in ways that were unintended and unforeseen. Have we entered an age of disintegrating property rights? [More]

For years the implications of the Coase Theorem have guided policy debates concerning the efficient allocation of property rights. Recently, many studies have pointed to the existence of the Endowment Effect. The Endowment Effect suggests that initial entitlement to certain property rights may matter, and has led many Scholars to re-examine previous assumption based on the main tenet of the Coase Theorem – absent transaction costs property rights will be allocated efficiently. This article will give an overview of the Coase Theorem, Rational Choice Theory, and the Endowment Effect and how they impact the bargain for exchange. [More]