EVOLUTION AND SPONTANEOUS UNIFORMITY - EVIDENCE FROM THE EVOLUTION OFTHE LIMITED-LIABILITY COMPANY

We examine whether the unguided state-by-state evolution of limited li ability company statutes has led to efficient interstate uniformity. O ur evidence suggests significant uniformity has been produced in cases where the net benefits of uniformity are positive, and that such unif ormity has not been produced by herd behavior. Our results an consiste nt with Alchian's intuition about the role of market processes, and su ggests that the survival 4 efficient rules, fostered by the rational b ehavior of decentralized economic actors, are produced by forces beyon d the control or foresight 4 individual lawmakers or legislatures.