ABSTRACT
The law and economics scholarship initiated at the law school of University of Chicago was based on the premise that markets are capable of efficiently pricing commodities and to regulate themselves, and therefore, the interventions of the sovereign state merely serve to reduce efficiency. By the early 1960s, the American competitive capitalism was running at high speed, based on a mass production and mass consumption model that managed to make the average American considerably wealthier than citizens in most other comparable industrialized countries. The legal scholar Henry Manne formulated the concept of the market for management control to denote how finance markets serve the role to monitor the quality of managerial decision-making on basis of the pricing of the assets the focal firm issue on the market. Orthodox neoclassical economic theory otherwise renders self-interested behaviour a central factor when studying or explaining economic pursuits and activities.
