Corporate Law Criteria: Law's Relation to Private Ordering

Abstract

I. Criteria Concerned with the Relative Role of Law and Private Ordering ...... 97 1. Constraining Human Behavior: Private Ordering as the First Mover ....... 98 2. Recognizing Law 's Hum ility ............................................................... 98 3. Preventing Externalization of Behavior .............................................. 99 4. Filling Gaps in Bounded Rationality .................................................. 99 5. Reducing Transaction Costs/Creating Wealth ........................................ 100 6. Getting the Preferred Balance in Our Federal System ............................ 100 II. How the Criteria Concerning the Relative Role of Law and Private Ordering Might Shift an Analysis of Good Corporate Law .................. 101 III. C onclusion ................................................................................................. 104