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The Fraser Institute, Essential UCLA School of Economics: Why Property Rights Are Key to Efficiency and Reduce Conflict

Essential UCLA School of Economics: Why Property Rights Are Key to Efficiency and Reduce Conflict

Welcome to the essential ideas of the UCLA School of Economics.

One area where UCLA economists made enormous contributions was how property rights help

solve economic problems, reducing conflict and promoting the efficient use of resources.

Harold Demsetz, a key member of the school, was one of the first to write about the “tragedy

of the commons,” which explains that when property is owned by everyone communally, it

will be overused and used ineffectively. Demsetz observed that when property is privately owned,

and people directly benefit from its ownership, property owners have much stronger incentives

to use it wisely and effectively. Let's explore the importance of property

rights using an example. Imagine a small lake with a water skiing school on one side

and a fishing lodge on the other. Neither has property rights to the lake.

The water skiiers interfere with the people fishing, hurting their business.

And similarly, the people fishing interfere with the water skiiers and hurt their business. The two

businesses have tried to negotiate but, without property rights, a permanent solution is unlikely.

But now let's imagine that each was given property rights over half the lake.

Suddenly, many potential solutions are possible.

The fishing lodge might offer to buy the water ski business—or vice versa.

Whichever business valued the lake more, would likely buy the other out,

leading to the most effective use of the lake. Alternatively, the two businesses might agree

to a buffer between their two sides to better accommodate both activities, or the fishing lodge

might pay the water skiing school to operate only during off-season periods, which would

reduce conflict between the two. The presence of property rights allows for such negotiations.

Much of the work of the UCLA School of Economics focused on the importance of having well-defined

private property rights to reduce conflict and promote the efficient use of resources.

For more information on the UCLA economics visit EssentialUCLAeconomics.org, and to learn about

more essential scholars, visit EssentialScholars.org

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Essential UCLA School of Economics: Why Property Rights Are Key to Efficiency and Reduce Conflict ||||||Własność(1)|||||efektywność||| Essential UCLA School of Economics: Why Property Rights Are Key to Efficiency and Reduce Conflict Imprescindible Escuela de Economía de la UCLA: Por qué los derechos de propiedad son clave para la eficiencia y reducen los conflictos UCLA経済学部の本質なぜ財産権が効率性の鍵であり、紛争を減らすのか? Essencial da Escola de Economia da UCLA: Porque é que os direitos de propriedade são fundamentais para a eficiência e reduzem o conflito Основные положения Школы экономики Калифорнийского университета: Почему права собственности являются ключом к эффективности и уменьшению конфликтов Temel UCLA Ekonomi Okulu: Mülkiyet Hakları Neden Verimliliğin Anahtarıdır ve Çatışmaları Azaltır? Essential UCLA School of Economics: Чому права власності є ключем до ефективності та зменшення конфліктів 加州大学洛杉矶分校经济学院必修课:为什么产权是提高效率和减少冲突的关键?

Welcome to the essential ideas  of the UCLA School of Economics. |||||||UCLA||| Welcome to the essential ideas of the UCLA School of Economics.

One area where UCLA economists made enormous  contributions was how property rights help |||||||contributions||||| ||||||ogromne|wkład|||własności|| |||||||prispevki||||| One area where UCLA economists made enormous contributions was how property rights help Однією з областей, де економісти Каліфорнійського університету зробили величезний внесок, було те, як права власності допомагають

solve economic problems, reducing conflict  and promoting the efficient use of resources. ||||||encouraging||||| ||||||promowanie||||| solve economic problems, reducing conflict and promoting the efficient use of resources. resolver problemas económicos, reduzindo os conflitos e promovendo a utilização eficiente dos recursos. вирішувати економічні проблеми, зменшуючи конфлікти та сприяючи ефективному використанню ресурсів.

Harold Demsetz, a key member of the school, was  one of the first to write about the “tragedy |||||||||||||||||of the commons |||||||||||||||||悲劇 |||||||||||||||||tragedia Harold Demsetz, a key member of the school, was one of the first to write about the “tragedy Harold Demsetz, um dos principais membros da escola, foi um dos primeiros a escrever sobre a "tragédia Гарольд Демсец, ключовий член школи, був одним з перших, хто написав про "трагедію

of the commons,” which explains that when  property is owned by everyone communally, it ||||||||||||as a group| ||||||||||||共同で| ||wspólne||wyjaśnia||||||||wspólnie| ||skupna dobrina||||||||||| of the commons,” which explains that when property is owned by everyone communally, it dos bens comuns", que explica que quando a propriedade é detida por todos em comum, ela спільності", яка пояснює, що коли майно перебуває у спільній власності, воно

will be overused and used ineffectively. Demsetz  observed that when property is privately owned, ||excessively utilized||||||||||| ||過剰に使用され||||||||||| ||przeeksploatowane||||||||||| will be overused and used ineffectively. Demsetz observed that when property is privately owned, serão utilizados em excesso e de forma ineficaz. Demsetz observou que quando a propriedade é privada, буде зловживати і використовуватись неефективно. Демсец зауважив, що коли власність перебуває у приватній власності,

and people directly benefit from its ownership,  property owners have much stronger incentives ||||||||||||motivation to invest ||||||własności||właściciele nieruchomości||||zachęty ||||||||||||spodbude and people directly benefit from its ownership, property owners have much stronger incentives a ludzie bezpośrednio korzystają z jego własności, właściciele nieruchomości mają znacznie silniejsze zachęty e as pessoas beneficiarem directamente da sua propriedade, os proprietários têm incentivos muito mais fortes і люди отримують безпосередню вигоду від володіння нею, власники нерухомості мають набагато сильніші стимули

to use it wisely and effectively. Let's explore the importance of property |||with good judgment|||||||| to use it wisely and effectively. Let's explore the importance of property

rights using an example. Imagine a small  lake with a water skiing school on one side |||||||||||water skiing|||| |||||||||||nartach wodnych|||| rights using an example. Imagine a small lake with a water skiing school on one side direitos utilizando um exemplo. Imagine um pequeno lago com uma escola de esqui aquático numa das margens

and a fishing lodge on the other. Neither has property rights to the lake. |||||||ninguno|||||| ||fishing lodge|cabin||||||||||the lake |||小屋||||どちらも|||||| ||wędkarską|dom rybacki||||||własności|prawa do nieruchomości||| |||pousada|||||||||| and a fishing lodge on the other. Neither has property rights to the lake. Żadna ze stron nie posiada praw własności do jeziora. e um pavilhão de pesca no outro. Nenhum dos dois tem direitos de propriedade sobre o lago.

The water skiiers interfere with the  people fishing, hurting their business. ||water skiers|disturb||||||| |||妨げる||||||| ||narciarze wodni|przeszkadzają|||||szkodząc|| The water skiiers interfere with the people fishing, hurting their business. Os praticantes de esqui aquático interferem com as pessoas que pescam, prejudicando o seu negócio. Водні лижники заважають людям рибалити, завдаючи шкоди їхньому бізнесу.

And similarly, the people fishing interfere with  the water skiiers and hurt their business. The two |||||||||||perjudican|||| And similarly, the people fishing interfere with the water skiiers and hurt their business. The two Da mesma forma, as pessoas que pescam interferem com os esquiadores aquáticos e prejudicam o seu negócio. Os dois

businesses have tried to negotiate but, without  property rights, a permanent solution is unlikely. |||||||||||||mało prawdopodobne businesses have tried to negotiate but, without property rights, a permanent solution is unlikely. As empresas tentaram negociar mas, sem direitos de propriedade, é improvável uma solução permanente.

But now let's imagine that each was  given property rights over half the lake. But now let's imagine that each was given property rights over half the lake. Mas agora imaginemos que a cada um deles foram concedidos direitos de propriedade sobre metade do lago.

Suddenly, many potential solutions are possible. De repente, muitas soluções potenciais são possíveis.

The fishing lodge might offer to buy  the water ski business—or vice versa. |||||||||water ski|||| ||ośrodek wędkarski||||||||||| The fishing lodge might offer to buy the water ski business—or vice versa. O alojamento de pesca pode oferecer-se para comprar o negócio de esqui aquático - ou vice-versa.

Whichever business valued the lake  more, would likely buy the other out, ||appreciated||||||||| どちらの||重視した||||||||| ||ceniąca||||||||| Whichever business valued the lake more, would likely buy the other out, L'entreprise qui valorise le plus le lac rachète probablement l'autre, A empresa que valorizasse mais o lago, provavelmente compraria a outra,

leading to the most effective use of the lake. Alternatively, the two businesses might agree |||||||||On the other hand||||| |||||||||あるいは||||| leading to the most effective use of the lake. Alternatively, the two businesses might agree que conduzam a uma utilização mais eficaz do lago. Em alternativa, as duas empresas poderão chegar a acordo

to a buffer between their two sides to better  accommodate both activities, or the fishing lodge ||buffer zone||||||||||||| |||||||||調整する|||||| ||um buffer||||||||||||| |||||||||pomieścić|||||| to a buffer between their two sides to better accommodate both activities, or the fishing lodge a um tampão entre os dois lados para melhor acomodar ambas as actividades, ou o pavilhão de pesca

might pay the water skiing school to operate  only during off-season periods, which would |||||||function||||||| might pay the water skiing school to operate only during off-season periods, which would poderia pagar à escola de esqui aquático para funcionar apenas durante a época baixa, o que

reduce conflict between the two. The presence  of property rights allows for such negotiations. |||||||||||||discussions ||||||存在||||||| ||||||obecność||||||| reduce conflict between the two. The presence of property rights allows for such negotiations. reduzir o conflito entre os dois. A existência de direitos de propriedade permite essas negociações.

Much of the work of the UCLA School of Economics  focused on the importance of having well-defined |||||||||||||||||clearly articulated Much of the work of the UCLA School of Economics focused on the importance of having well-defined Grande parte do trabalho da Escola de Economia da UCLA centrou-se na importância de ter

private property rights to reduce conflict  and promote the efficient use of resources. direitos de propriedade privada para reduzir os conflitos e promover a utilização eficiente dos recursos.

For more information on the UCLA economics visit EssentialUCLAeconomics.org, and to learn about

more essential scholars, visit EssentialScholars.org ||important researchers||Essential Scholars| mais académicos essenciais, visite EssentialScholars.org