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To enclose the work or the capital in working out of existing resources. Difficultly
To imagine something more reducing investments, than uncertainty.
Any inhabitant of extralegal settlement will not enclose considerable means in the
The house if will not have the guaranteed property right to it; any
The street dealer will not wish to arrange well a street site, on which
Works, if he is afraid of exile;
And any bus driver not begins to observe a public order on
Route if its rights are not recognised. People whom we interrogated, stated
Constant fears that the law can become a basis of violence against them, and them
Activity will be suddenly stopped.
It is necessary to notice that legislative people also incur costs
Extralegality as it is impossible to rely on the property rights completely,
Arrangements and extracontract guarantees if the state can it is any
To use legal system. An essence of the uncertainty created by absence
Auxiliary legal tools becomes more clear if to correlate it
With insurance function. We will assume that the car by in 10 thousand dollars
Can be stolen within a year with probability 1/1000. The theoretical annual
Stealing costs will make 10 dollars, or 1/1000 from 10 thousand dollars If the owner
The car does not disturb risk has no value, whether the car is insured
For 10 dollars a year, or there is 1 chance from 1000 to lose 10 thousand dollars On
The business, however, very few people is indifferent to such risk. The majority of people,
If they have means, will pay much more than 10 dollars, if only
To compensate possible losses. Prevalence of insurance shows,
That people do not suffer uncertainty and are ready to pay the high price, that it
To avoid. As the law does not undertake anything to disseminate
Uncertainty, people are disappointed in hopes to achieve from it protection and
Start to search for other ways of reduction of risk.
In the legal world for risk reduction distribute actions and responsibility
Among partners, diversify a participation portfolio, establish the exact
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