John M. Olin Conference on Real Options and the Law
John M. Olin Program in Law and Economics

Prof. Mahoney with a student

Law professor Julia Mahoney (right) spoke with students about her paper,
“Perpetual Restrictions on Land and the Problem of the Future.”

John M. Olin Conference Real Options and the Law

Friday and Saturday, October 1-2, 2004, Room WB128
Joyce Holt

Real options techniques are widely used in finance and economics to evaluate investment flexibility and to design multi-period strategies that maximize returns from flexibility. Legal scholars have begun to apply real options analysis to a range of legal contexts in which a party enjoys a discretionary right: for example, the right of an actor to commit a wrong (or breach a contract) and incur liability, the right of the innocent party to choose among remedies, the right to file a law suit and proceed through multi-staged litigation. This conference brings together scholars who have introduced options analysis to law in their prior writing, to examine a range of legal options.



9:15 a.m.

Joseph Grundfest, Stanford Law School
Peter Huang, University of Minnesota Law School

The Unexpected Value of Litigation

Discussants: Paul Mahoney, University of Virginia School of Law; Alexander Triantis, University of Maryland School of Business.

10:45 a.m.


11:00 a.m.

Michael Knoll and Reed Shuldiner, University of Pennsylvania Law School

Real Options and Tax Law

Discussants: Robert McDonald, Northwestern University School of Management; Jeff Strnad, Stanford Law School

12:30 p.m. Lunch, Stone Dining Room, by reservation only.
1:45 p.m.

Ian Ayres, Yale Law School
Paul Goldbart, University of Illinois Department of Physics

Instantaneous Liability Rule Auctions: The Continuous Extension of Higher-Order Liability Rules

Discussants: Bentley MacLeod, USC Law School/Department of Economics; Richard Brooks, Yale Law School

3:15 p.m.


3:30 p.m.

Lee Anne Fennell, University of Illinois Law School

Revealing Options

Discussants: Albert Choi, University of Virginia School of Law/Department of Economics; George Triantis, University of Virginia School of Law

9:00 a.m.

Ronen Avraham, Northwestern University School of Law

Incomplete Contracts with Asymmetric Information: The Option to Enforce

Discussants: Avery Katz, Columbia University School of Law; Alan Schwartz, Yale Law School

10:30 a.m.


10:45 a.m.

Oren Bar-Gill, Society of Fellows, Harvard University

Pricing Legal Options: A Behavioral Perspective

Discussants: Russell Korobkin, UCLA School of Law; Robert Scott, University of Virginia School of Law