Frank T. Lorne

Ambiguous Property Rights: A Taxonomic and Exploratory Account of Post-colonial Rural Housing in Chinese Hong Kong

This paper explains the nature of David Li’s concept of ambiguous property rights and three angles to see right ambiguity from a Coasian-constrained choice-theoretical perspective and elaborate on that ambiguity in terms of five scenarios of de jure and de facto rights. The case of indigenous village housing in post-colonial Hong Kong under a mature system of the rule of law is used to demonstrate the ambiguities due to a gap between de jure and de facto property rights that may not degenerate into anarchy due to rational choices made under common law constraints driven ultimately by the land market. The implications of the case study for evaluating ambiguities in property rights in China are also discussed.

A "Hong Kong" model of sustainable development

Purpose – The purpose of this paper is to discuss a Coasian interpretation of a model of sustainable development for Hong Kong that incorporates three segments, namely economy, society, and environment.Design/methodology/approach – The approach is analytical, using concepts of property rights informed by Coasian neo‐institutional economics and Yus ideas on the Schumpeterian process in innovation.Findings – First, the sustainable development criteria must be non‐dictatorial, decentralized, and compatible with market economics. The emphasis is contractarian rather than legislative or administrative. Second, the essence of segment cooperation is to create a win‐win situation rather than an “integrated” rent seeking game, which will likely result in more values being created. Third, the requirement that it be progressive over time implies that programs and policies that are duplicative need to be avoided, and innovations are to be encouraged. Fourth, the requirement of satisfying only two aspects of the thre...

Planning by Negotiation for Sustainable Development: A Tale of Two Habitats

In the December 2005 issue of Economic Affairs, a collection of authors considered alternative institutions for planning and managing urban affairs. Following up the idea of planning by contract, this paper reflects on the role of negotiation in securing gains from trade over contested local environmental resources. The idea of an obstructive classical planning game is contrasted with the concept of creative negotiation by reference to two case studies. Copyright (c) Institute of Economic Affairs 2006.

MARINE FISH PRODUCTION AND MARKETING FOR A CHINESE FOOD MARKET: A TRANSACTION COST PERSPECTIVE

ABSTRACT From a transaction cost perspective, this paper shows how the tradition of consuming marine fish by the majority of Hong Kongs Chinese citizens has shaped the means and modes of marketing seafood in Hong Kong. It is argued that consumer preferences stimulate aquaculture as a non-open access measure to bypass state fish marketing regulations. This has resulted in two outcomes. First, the transaction cost savings on metering output quantity and quality under private property have led not only to the collapse of the state monopoly on marine fish marketing, but also to the emergence of the (then new but) currently popular kind of Chinese seafood restaurant in Hong Kong. Second, consumer preferences for variety have shaped the form of coordination between the producer and the consumer. The advantage of market coordination has led to the emergence of a system of wholesaling and retailing rather than vertical integration. Issues concerning the emergence of Hong Kong as a regional live marine fish production and trading centre are discussed in terms of the contribution of local mariculture to sustainable development.