Economics Studies Applied to Lesion of the Civil Code

Abstract

This article conducts economics studies in the analysis of the lesion law institute to observe how it affects the resource allocation. It utilizes the subjective economic theory of value. It distinguishes lesion caused by urgent necessity from lesion caused by inexperience, applying economic studies of monopolistic prices and of informational asymmetry. It notes that the occurrence of lesion and its repression generate few signals to the market. Lesion doesn’t generate significant dead weight. When the cause of lesion is inexperience, the institute is able to provide economic efficiency because reduce transaction costs.