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| economic analysis of the law: Foundations of Economic Analysis of Law Steven Shavell, 2009-07-01 What effects do laws have? Do individuals drive more cautiously, clear ice from sidewalks more diligently, and commit fewer crimes because of the threat of legal sanctions? Do corporations pollute less, market safer products, and obey contracts to avoid suit? And given the effects of laws, which are socially best? Such questions about the influence and desirability of laws have been investigated by legal scholars and economists in a new, rigorous, and systematic manner since the 1970s. Their approach, which is called economic, is widely considered to be intellectually compelling and to have revolutionized thinking about the law. In this book Steven Shavell provides an in-depth analysis and synthesis of the economic approach to the building blocks of our legal system, namely, property law, tort law, contract law, and criminal law. He also examines the litigation process as well as welfare economics and morality. Aimed at a broad audience, this book requires neither a legal background nor technical economics or mathematics to understand it. Because of its breadth, analytical clarity, and general accessibility, it is likely to serve as a definitive work in the economic analysis of law. |
| economic analysis of the law: An Economic Analysis of Public Law George Dellis, 2021-03-26 This original and insightful book considers the ways in which public law, which emphasises legality (the Demos), and economics, a science oriented towards the markets (the Agora), intertwine. Throughout, George Dellis argues that the concepts of legality and efficiency should not be perceived separately. |
| economic analysis of the law: Law and Economics Robert Cooter, Thomas Ulen, 2000 Provides students with a method for applying economic analysis to the study of legal rules and institutions. Four key areas of law are covered: property; contracts; torts; and crime and punishment. Added examples and cases help to clarify economic applications further. |
| economic analysis of the law: The Economic Analysis of Civil Law Schäfer, Hans-Bernd, Ott, Claus, 2022-01-25 This comprehensive textbook provides a thorough guide to the economic analysis of law, with a particular focus on civil law systems. It encapsulates a structured analysis and nuanced evaluation of norms and legal policies, using the tools of economic theory. |
| economic analysis of the law: Efficiency Instead of Justice? Klaus Mathis, 2009-03-18 Economic analysis of law is an interesting and challenging attempt to employ the concepts and reasoning methods of modern economic theory so as to gain a deeper understanding of legal problems. According to Richard A. Posner it is the role of the law to encourage market competition and, where the market fails because transaction costs are too high, to simulate the result of competitive markets. This would maximize economic efficiency and social wealth. In this work, the lawyer and economist Klaus Mathis critically appraises Posner’s normative justification of the efficiency paradigm from the perspective of the philosophy of law. Posner acknowledges the influences of Adam Smith and Jeremy Bentham, whom he views as the founders of normative economics. He subscribes to Smith’s faith in the market as an ideal allocation model, and to Bentham’s ethical consequentialism. Finally, aligning himself with John Rawls’s contract theory, he seeks to legitimize his concept of wealth maximization with a consensus theory approach. In his interdisciplinary study, the author points out the possibilities as well as the limits of economic analysis of law. It provides a method of analysing the law which, while very helpful, is also rather specific. The efficiency arguments therefore need to be incorporated into a process for resolving value conflicts. In a democracy this must take place within the political decision-making process. In this clearly written work, Klaus Mathis succeeds in making even non-economists more aware of the economic aspects of the law. |
| economic analysis of the law: Economic Analysis of Law Richard A. Posner, 2011 Economic Analysis of Law, Eighth Edition, written by the pioneer in law and economics analysis, Richard A. Posner, remains the classic text in its field. This lucid, comprehensive casebook covers every aspect of the economic analysis of the law, including the common law, public regulation of the market, business organizations and financial markets, the distribution of income and wealth, the legal process, and the Constitution and the federal system. The Eighth Edition has been substantially revised to take into account current events, including the continuing economic crisis, the re-emerging field of organization economics, and recent work by the author and others on judicial behavior. The this preeminent casebook continues to offer Coverage of the legal-economic perspective on all key areas, from common law to the constitution. Accessible, lucid, and user-friendly writing and organization: Non-quantitative approach does not assume or require prior knowledge of economics or mathematics Part and chapter organization are based on legal, not economic, concepts End-of-chapter sections reinforce and extend learning with problems and suggested further readings. The Eighth Edition has been updated and revised to reflect current economic realities: The continuing economic crisis, which began in September 2008, has led to a reexamination of some of the tenets of economics manifested in previous editions. These changes are found primarily in the following chapters: Chapter 1, The Nature of Economic Reasoning Chapter 13, The Choice Between Regulation and Common Law Chapter 14, Corporations, Secured and Unsecured Financing, Bankruptcy Chapter 15, Financial Markets In Chapter 14, Corporations, Secured and Unsecured Financing, Bankruptcy, changes have been incorporated based on the re-emerging field of organization economics. Substantial changes to reflect recent work by the author and others on judicial behavior are evident in Chapter 19, The Market, the Adversary System, and the Legislative Process as Methods of Resource Allocation. Significant changes have also been made in the following chapters: Chapter 3, Property Chapter 4, Contract Rights and Remedies Chapter 17, Taxation Chapter 21, Civil and Criminal Procedure |
| economic analysis of the law: Economic Analysis of Accident Law Steven Shavell, 2007-03-31 Accident law, if properly designed, is capable of reducing the incidence of mishaps by making people act more cautiously. Since the 1960s, a group of legal scholars and economists have focused on identifying the effects of accident law on people's behavior. Steven Shavell’s book is the definitive synthesis of research to date in this new field. |
| economic analysis of the law: Foundations of Economic Analysis of Law Steven Shavell, 2004-03-15 What effects do laws have? Do individuals drive more cautiously, clear ice from sidewalks more diligently, and commit fewer crimes because of the threat of legal sanctions? Do corporations pollute less, market safer products, and obey contracts to avoid suit? And given the effects of laws, which are socially best? Such questions about the influence and desirability of laws have been investigated by legal scholars and economists in a new, rigorous, and systematic manner since the 1970s. Their approach, which is called economic, is widely considered to be intellectually compelling and to have revolutionized thinking about the law. In this book Steven Shavell provides an in-depth analysis and synthesis of the economic approach to the building blocks of our legal system, namely, property law, tort law, contract law, and criminal law. He also examines the litigation process as well as welfare economics and morality. Aimed at a broad audience, this book requires neither a legal background nor technical economics or mathematics to understand it. Because of its breadth, analytical clarity, and general accessibility, it is likely to serve as a definitive work in the economic analysis of law. |
| economic analysis of the law: Economic Analysis of the Arbitrator’s Function Bruno Guandalini, 2020-06-16 Economic Analysis of the Arbitrator’s Function Bruno Guandalini Arbitration has become an important market, where arbitrators are rational economic agents maximizing their utility. Although this is self-evident, it is rarely discussed. This penetrating book is the first to comprehensively analyze the market for arbitrators and arbitrators’ economic role within it. In great depth, the author tackles such salient issues as the following: effect of perceived inefficiencies and high costs on arbitration legitimacy; alleged commercialization of the arbitrator’s function; possible ethical problem raised by financial remuneration for rendering justice; what motivates a person to arbitrate; market for arbitrators’ functioning and failures, providing a better understanding of how actors could behave in such a specific market; structural and artificial entry barriers; effect of an arbitrator’s strategic behavior on the arbitrator’s function; limitations on an arbitrator’s rationality; and preventing and correcting these limitations. Numerous references to customs and procedures in major arbitral jurisdictions and to international laws and conventions affecting the efficiency of the arbitrator’s function are included. Pursuing a non-prescriptive analysis, the author draws on the discipline of law and economics, rational choice theory, behavioral economics, and psychological work on bounded rationality. Understanding the arbitrator’s function as a legal institution that is influenced by the market, this pioneer in developing and systematizing the study of the market for arbitrators and how it works will prove of inestimable value to all stakeholders in the arbitration market. Arbitrators, policymakers, regulators, and academics will be enabled to open the way to a more efficient market for arbitrators and betterment in arbitration worldwide. |
| economic analysis of the law: Economic Analysis of Law Richard A. Posner, 2003 This classic casebook earned its position as the preeminent work in the field by teaching generations of students the meaning and methods of economic analysis. The Sixth Edition continues to cover every aspect of economic analysis of the law--from common, business, and public International Law to public market regulation, evidence, and the economic theory of democracy.These distinctive features make Economic Analyis of Law such a bestseller: - author Richard A. Posner is a pioneer in law and economics analysis - comprehensive coverage of all key areas, from common law to the constitution - lucid, and user-friendly writing and organization to makes the study of economics more accessible - non-quantitative approach does not assume or require any prior knowledge of mathematics or economics - part and chapter organization is based on legal--not economic--concepts - excellent topical coverage stimulates class discussion - end-of-chapter sections extend learning through problems and suggested further readingsRevised and updated for its Sixth Edition, the casebook now offers: - new coverage in areas such as evidence, intellectual property, public International Law, and the economics of presidential pardons - chapters on antitrust and taxation that have been extensively revised - responses to all questions and problems in the Teacher's ManualLet your students learn economic analysis from the expert who set the standard through his definitive reference, Posner's Economic Analysis of Law, Sixth Edition. |
| economic analysis of the law: Law and Economics of Regulation Klaus Mathis, Avishalom Tor, 2021-04-24 This book explores current issues regarding the regulation of various economic sectors, theoretically and empirically, discussing both neoclassical and behavioural economics approaches to regulation. Regulation has become one of the main determinants of modern economies, and virtually every sector is subject to general laws and regulations as well as specific rules and standards. A traditional argument to justify regulatory interventions is the promotion of public interests. Fixing markets that lack competition, balancing information asymmetries, internalising externalities, mitigating systemic risks, and protecting consumers from irrational behaviour are frequently invoked to complement the invisible hand of the market with the visible hand of the state.However, regulations can lead to unintended consequences, and serve the interests of powerful private interest groups rather than the public interest and social welfare. In addition, new insights from behavioural economics question the traditional regulatory approaches, most prominently in attitudes towards consumers. Furthermore, digitalisation and technological innovation in general present new challenges in terms of both the type of regulation and the regulatory process.Part I of this book discusses various theoretical approaches to the economic analysis of regulations, while Part II looks at specific applications of the law and economics of regulation. |
| economic analysis of the law: Economic Analysis of Property Rights Yoram Barzel, 1997-04-13 This is a study of the way individuals organise the use of resources in order to maximise the value of their economic rights over these resources. |
| economic analysis of the law: Corporate Law and Economic Analysis Lucian Arye Bebchuk, 1990-10-26 The past decade has brought certain corporate transactions and arrangements to the forefront of public attention and debate. At the same time, a new mode of corporate law analysis has been developed--one that uses economics to identify the consequences and desirable features of corporate law rules. This collection of papers uses economic analysis to study some of the main issues in corporate law. By collecting work at the frontier of this method of analysis, the volume provides a clear picture of the power, current state, and future direction of the economic analysis of corporate law. Written by some of the most prominent contributors to the field, many of the papers focus directly on the corporate control transactions that have attracted much interest and controversy in the past decade--corporate takeovers, buyouts, recapitalizations, and reorganizations. |
| economic analysis of the law: The Economic Structure of Corporate Law Frank H. Easterbrook, Daniel R. Fischel, 1996-02-01 The authors argue that the rules and practices of corporate law mimic contractual provisions that parties would reach if they bargained about every contingency at zero cost and flawlessly enforced their agreements. But bargaining and enforcement are costly, and corporate law provides the rules and an enforcement mechanism that govern relations among those who commit their capital to such ventures. The authors work out the reasons for supposing that this is the exclusive function of corporate law and the implications of this perspective. |
| economic analysis of the law: Law and Economics Margaret Oppenheimer, Nicholas Mercuro, 2015-06-01 The economic analysis of legal and regulatory issues need not be limited to the neoclassical economic approach. The expert contributors to this work employ a variety of heterodox legal-economic theories to address a broad range of legal issues. They demonstrate how these various approaches can lead to very different conclusions concerning the role of the law and legal intervention in a wide array of contexts. The schools of thought and methodologies represented here include institutional economics, new institutional economics, socio-economics, social economics, behavioral economics, game theory, feminist economics, Rawlsian economics, radical economics, Austrian economics, and personalist economics. The legal and regulatory issues examined include anti-trust and competition, corporate governance, the environment and natural resources, land use and property rights, unions and collective bargaining, welfare benefits, work-time regulation and standards, sexual harassment in the workplace, obligations of employers and employees to each other, crime, torts, and even the structure of government. Each contributor brings a different emphasis and provides thoughtful, sometimes provocative analysis and conclusions. Together, these heterodox insights will provide valuable supplementary reading for courses in law and economics as well as public policy and business courses at both the graduate and undergraduate levels. |
| economic analysis of the law: Behavioral Law and Economics Eyal Zamir, Doron Teichman, 2018 In the past few decades, economic analysis of law has been challenged by a growing body of experimental and empirical studies that attest to prevalent and systematic deviations from the assumptions of economic rationality. While the findings on bounded rationality and heuristics and biases were initially perceived as antithetical to standard economic and legal-economic analysis, over time they have been largely integrated into mainstream economic analysis, including economic analysis of law. Moreover, the impact of behavioral insights has long since transcended purely economic analysis of law: in recent years, the behavioral movement has become one of the most influential developments in legal scholarship in general. Behavioral Law and Economics offers a state-of-the-art overview of the field. Eyal Zamir and Doron Teichman survey the entire body of psychological research that lies at the basis of behavioral analysis of law, and critically evaluate the core methodological questions of this area of research. Following this, the book discusses the fundamental normative questions stemming from the psychological findings on bounded rationality, and explores their implications for setting the law's goals and designing the means to attain them. The book then provides a systematic and critical examination of the contributions of behavioral studies to all major fields of law including: property, contracts, consumer protection, torts, corporate, securities regulation, antitrust, administrative, constitutional, international, criminal, and evidence law, as well as to the behavior of key players in the legal arena: litigants and judicial decision-makers. |
| economic analysis of the law: Economic Analysis for Lawyers Henry N. Butler, Christopher R. Drahozal, 2006 The purpose of this casebook is to teach the principles of microeconomics. Economic Analysis for Lawyers presumes no prior training in economics and uses the same building block approach that is found in most microeconomics principles textbooks that are used in undergraduate economics classes. This book includes excerpted cases and other materials that illustrates the applicability of the economic principles to legal disputes and public policy issues. Fundamental principles are introduced in the first four chapters. Subsequent chapters build on these fundamentals by adding a detailed and sophisticated analysis in the general areas of monopoly, externalities, information, labor markets, risk, organizational economics, and financial economics. The result is a thorough introduction to the principles of microeconomics. |
| economic analysis of the law: Roman Law and Economics Giuseppe Dari-Mattiacci, Dennis P. Kehoe, 2020 Ancient Rome is the only society in the history of the western world whose legal profession evolved autonomously, distinct and separate from institutions of political and religious power. Roman legal thought has left behind an enduring legacy and exerted enormous influence on the shaping of modern legal frameworks and systems, but its own genesis and context pose their own explanatory problems. The economic analysis of Roman law has enormous untapped potential in this regard: by exploring the intersecting perspectives of legal history, economic history, and the economic analysis of law, the two volumes of Roman Law and Economics are able to offer a uniquely interdisciplinary examination of the origins of Roman legal institutions, their functions, and their evolution over a period of more than 1000 years, in response to changes in the underlying economic activities that those institutions regulated. Volume I explores these legal institutions and organizations in detail, from the constitution of the Roman Republic to the management of business in the Empire, while Volume II covers the concepts of exchange, ownership, and disputes, analysing the detailed workings of credit, property, and slavery, among others. Throughout each volume, contributions from specialists in legal and economic history, law, and legal theory are underpinned by rigorous analysis drawing on modern empirical and theoretical techniques and methodologies borrowed from economics. In demonstrating how these can be fruitfully applied to the study of ancient societies, with due deference to the historical context, Roman Law and Economics opens up a host of new avenues of research for scholars and students in each of these fields and in the social sciences more broadly, offering new ways in which different modes of enquiry can connect with and inform each other. |
| economic analysis of the law: Economic Analysis of Contract Law Sugata Bag, 2018-01-24 This book examines the main issues arising in economic analysis of contract law with special attention given to the incomplete contracts. It discusses both the main features of contract law as they relate to the problem of economic exchange, and how the relevant legal rules and the institutions can be analysed from an economic perspective. Evaluate the welfare impacts, analyses the effects and the desirability of different breach remedies and examines the optimal incentive structure of party-designed liquidated damages under the different dimensions of informational asymmetry. Overall the book aims to contribute to the legal debate over the adoption of the specific breach remedies when the breach victim’s expectation interest is difficult to assess, and to the debate over courts' reluctance to implement large penalties in the event of breach of contracts. |
| economic analysis of the law: The Future of Law and Economics Guido Calabresi, 2016-01-28 In a concise, compelling argument, one of the founders and most influential advocates of the law and economics movement divides the subject into two separate areas, which he identifies with Jeremy Bentham and John Stuart Mill. The first, Benthamite, strain, “economic analysis of law,” examines the legal system in the light of economic theory and shows how economics might render law more effective. The second strain, law and economics, gives equal status to law, and explores how the more realistic, less theoretical discipline of law can lead to improvements in economic theory. It is the latter approach that Judge Calabresi advocates, in a series of eloquent, thoughtful essays that will appeal to students and scholars alike. |
| economic analysis of the law: Consumer Law and Economics Klaus Mathis, Avishalom Tor, 2020-08-31 This edited volume covers the challenges currently faced by consumer law in Europe and the United States, ranging from fundamental theoretical questions, such as what goals consumer law should pursue, to practical questions raised by disclosure requirements, the General Data Protection Regulation and technology advancements. With governments around the world enacting powerful new regulations concerning consumers, consumer law has become an important topic in the economic analysis of law. Intended to protect consumers, these regulations typically seek to do so by giving them tools to make better decisions, or by limiting the consequences of their bad decisions. Legal scholars are divided, however, regarding the efficacy and effects of these regulations; some call for certain policies to be abolished, while others support a regulatory expansion. |
| economic analysis of the law: Limited Liability Stephen M. Bainbridge, M. Todd Henderson, 2016-09-30 The modern corporation has become central to our society. The key feature of the corporation that makes it such an attractive form of human collaboration is its limited liability. This book explores how, by allowing those who form the corporation to limit their downside risk and personal liability to only the amount they invest, there is the opportunity for more risks taken at a lower cost. |
| economic analysis of the law: Energy Law and Economics Klaus Mathis, Bruce R. Huber, 2018-04-19 This book offers an edited volume for all readers who wish to gain an in-depth grasp of the economic analysis of recent developments in energy law and policy in Europe and the United States. In response to waning resources and heightened environmental awareness, many countries are now seeking to redefine their energy mix. Several energy sources are available: coal and oil, natural gas, and a variety of renewables. Yet which of them are capable of addressing core energy-related concerns? Reliability, security, affordability, fairness, and sustainability all have to be taken into account. Further, once a target mix has been identified, two challenges remain for legal scholars: what role does the law play in achieving a specified energy mix, and, how can the law best fulfill that role? The essential energy concerns are just as important in defining the way we shape our energy mix as they are in defining the mix itself. An example of current challenges in energy law and policy can be seen in the pursuit by the German and Swiss governments of the so-called “Energiewende” (energy transition). These policies are intended to enable the transition from a non-sustainable use of fossil and nuclear energy to a more sustainable approach based on renewable energies. On the one hand, the goal is to achieve a decarbonization of the energy economy by reducing the use of fossil energy sources such as petroleum, carbon and natural gas. On the other, and in response to the Fukushima nuclear accident, a phase out is intended to eliminate the dangers of nuclear technologies. Achieving these goals poses tremendous challenges for the two countries’ energy policies – partly because the energy transition will not only affect energy production, but also energy consumption. From a Law and Economics perspective, a number of questions arise: to what extent is it justifiable to rely on markets and continued technological innovation, especially with regard to the present exploitation of scarce resources? To what extent is it necessary for states to intervene in energy markets? Regulatory instruments are available to create and maintain more sustainable societies: command and control regulations, restraints, Pigovian taxes, emission certificates, nudging policies, and more. If regulation in a certain legal field is necessary, which policies and methods will most effectively spur the sustainable consumption and production of energy in order to protect the environment while mitigating any potential negative impacts on economic development? Do neoclassical and behavioural economics provide us with a suitable framework for predicting the market’s complex reactions to a changing energy policy? This book provides theoretical insights as well as empirical findings in order to answer these vital questions. |
| economic analysis of the law: Words, Objects and Events in Economics Peter Róna, László Zsolnai, Agnieszka Wincewicz-Price, 2020-09-03 This open access book examines from a variety of perspectives the disappearance of moral content and ethical judgment from the models employed in the formulation of modern economic theory, and some of the papers contain important proposals about how moral judgment could be reintroduced in economic theory. The chapters collected in this volume result from the favorable reception of the first volume of the Virtues in Economics series and represent further contributions to the themes set out in that volume: (i) examining the philosophical and methodological fallacies of this turn in modern economic theory that the removal of the moral motivation of economic agents from modern economic theory has entailed; and (ii) proposing a return descriptive economics as the means with which the moral content of economic life could be restored in economic theory. This book is of interest to researchers and students of the methodology of economics, ethics, philosophers concerned with agency and economists who build economic models that rest in the intention of the agent. |
| economic analysis of the law: Economic Analysis of Law in China Thomas Eger, Michael G. Faure, 2007 'This book is an exemplary multi-disciplinary and multi-institutional study of contemporary Chinese law. A collective effort by a group of European and Chinese scholars, it skillfully tests the relationships between law and economics in the Chinese context.' - the China Journal |
| economic analysis of the law: Law's Order David D. Friedman, 2000 Publisher Fact Sheet Examines the relationship between economics & the law. |
| economic analysis of the law: An Introduction to Law and Economics A. Mitchell Polinsky, 2018-07-17 Distinguished by brevity, lucid writing, and well-chosen examples, An Introduction to Law and Economics, now in its Fifth Edition, focuses on a set of core topics that include property, contracts, torts, criminal law, and litigation. Avoiding specialized jargon and mathematics, Polinsky teaches students how to think like an economist and understand legal issues from an economic perspective. New to the Fifth Edition: A streamlining of the products liability chapter A revised discussion of the redistributive effects of legal rules to reflect more recent scholarship on this topic The addition of several other refinements in the text and in new footnotes An updated bibliography Professors and students will benefit from: Solid coverage of relevant economic principles A normative approach that illustrates how to assess legal rules and policies in terms of economic and social goals Clear explanations of concepts |
| economic analysis of the law: Economic Analysis of Tort Law Malabika Pal, 2019-09-02 This book looks at the negligence concept of tort law and studies the efficiency issue arising from the determination of negligence. It does so by scrutinizing actual court decisions from three common law jurisdictions – Britain, India and the United States of America. This volume fills a very significant gap, scrutinizing 52 landmark judgments from these three countries, by focussing on the negligent affliction of economic loss determined by common law courts and how these findings relate to the existing theoretical literature. By doing so, it examines the formalization of legal concepts in theory, primarily the question of negligence determination and liability, and their centrality in theories concerning tort law. This book will be very helpful for students, professors and practitioners of law, jurisprudence and legal theory. It will additionally be of use to researchers and academics interested in law and economics, procedure and legal history. |
| economic analysis of the law: Comparative Law and Economics the late Theodore Eisenberg, Giovanni B. Ramello, 2016-02-26 Contemporary law and economics has greatly expanded its scope of inquiry as well as its sphere of influence. By focussing specifically on a comparative approach, this Handbook offers new insights for developing current law and economics research. It also provides stimuli for further research, exploring the idea that the comparative method offers a valuable way to enrich law and economics scholarship. With contributions from leading scholars from around the world, the Handbook sets the context by examining the past, present and future of comparative law and economics before addressing this approach to specific issues within the fields of intellectual property, competition, contracts, torts, judicial behaviour, tax, property law, energy markets, regulation and environmental agreements. This topical Handbook will be of great interest and value to scholars and postgraduate students of law and economics, looking for new directions in their research. It will also be a useful reference to policymakers and those working at an institutional level. |
| economic analysis of the law: Law and Economics in Europe Klaus Mathis, 2013-11-11 This anthology illustrates how law and economics is developing in Europe and what opportunities and problems – both in general and specific legal fields – are associated with this approach within the legal traditions of European countries. The first part illuminates the differences in the development and reception of the economic analysis of law in the American Common Law system and in the continental European Civil Law system. The second part focuses on the different ways of thinking of lawyers and economists, which clash in economic analysis of law. The third part is devoted to legal transplants, which often accompany the reception of law and economics from the United States. Finally, the fourth part focuses on the role economic analysis plays in the law of the European Union. This anthology with its 14 essays from young European legal scholars is an important milestone in establishing a European law and economics culture and tradition. |
| economic analysis of the law: Foundations of the Economic Approach to Law , 2006 |
| economic analysis of the law: The Rise of Law and Economics George L. Priest, 2020-03-03 This is a history—though, intentionally, a brief history—of the rise of law and economics as a field of thought in the U.S. college and law school academy, though the field has expanded to Europe and South America and will expand further as other legal systems develop. This book explains the origins of the field and the sources of its growth during its formative period. It describes the intellectual roots of the field, and the field’s relationship to the understanding of the role of the legal system in directing the functioning of the economy. It describes the effect of the Great Depression and the expansion of governmental power on advancing the functional approach. The book then addresses the work of Aaron Director, during the late 1950s, on focusing economic analysis as a means of understanding the effects of the legal and regulatory system on the allocation of resources in the society. Then it turns to the subsequent intellectual founders of the field—Ronald Coase, Guido Calabresi, and Richard Posner—and attempts to explain the significance of their work. It also discusses the efforts of Robert Bork and Henry Manne toward the influence of law and economics on public policy. The book ends with the founding of the American Law and Economics Association in 1991. This is an essential companion to law and economics texts for undergraduate law and economic students and, especially, a general supplement to first-year casebooks for law school students. |
| economic analysis of the law: Economics in Legal Reasoning Péter Cserne, Fabrizio Esposito, 2020-06-30 This Palgrave Pivot is the first book in the field of Law & Economics looking at the relationship between economics and law in legal reasoning. The book constitutes a reference point for the economic analysis of legal institutions, as legal reasoning remains the dimension of legal systems least explored by economists. Despite their differences, economics and legal reasoning interact in many interesting ways. This book offers a fast track to these interactions. Both supporters and critics of Law & Economics will be exposed to a yet-to-be developed area of interaction between the disciplines. This book will be of interest to economists, legal scholars, and Law and Economics specialists, and can be used as teaching material in courses on Law & Economics and legal reasoning as well. |
| economic analysis of the law: The Law and Economics of Intellectual Property in the Digital Age Niva Elkin-Koren, Eli Salzberger, 2012-11-27 This book explores the economic analysis of intellectual property law, with a special emphasis on the Law and Economics of informational goods in light of the past decade’s technological revolution. In recent years there has been massive growth in the Law and Economics literature focusing on intellectual property, on both normative and positive levels of analysis. The economic approach to intellectual property is often described as a monolithic, coherent approach that may differ only as it is applied to a particular case. Yet the growing literature of Law and Economics in intellectual property does not speak in one voice. The economic discourse used in legal scholarship and in policy-making encompasses several strands, each reflecting a fundamentally different approach to the economics of informational works, and each grounded in a different ideology or methodological paradigm. This book delineates the various economic approaches taken and analyzes their tenets. It maps the fundamental concepts and the theoretical foundation of current economic analysis of intellectual property law, in order to fully understand the ramifications of using economic analysis of law in policy making. In so doing, one begins to appreciate the limitations of the current frameworks in confronting the challenges of the information revolution. The book addresses the fundamental adjustments in the methodology and underlying assumptions that must be employed in order for the economic approach to remain a useful analytical framework for addressing IPR in the information age. |
| economic analysis of the law: The Republic of Beliefs Kaushik Basu, 2020-12-08 [This book] argues that the traditional economic analysis of the law has significant flaws and has failed to answer certain critical questions satisfactorily. Why are good laws drafted but never implemented? When laws are unenforced, is it a failure of the law or the enforcers? And, most important, considering that laws are simply words on paper, why are they effective? Basu offers a provocative alternative to how the relationship between economics and real-world law enforcement should be understood. Basu summarizes standard, neoclassical law and economics before looking at the weaknesses underlying the discipline. Bringing modern game theory to bear, he develops a 'focal point' approach, modeling not just the self-interested actions of the citizens who must follow laws but also the functionaries of the state: the politicians, judges, and bureaucrats enforcing them. He demonstrates the connections between social norms and the law and shows how well conceived ideas can change and benefit human behavior. For example, bribe givers and takers will collude when they are treated equally under the law. And in food support programs, vouchers should be given directly to the poor to prevent shop owners from selling subsidized rations on the open market. Basu provides a new paradigm for the ways that law and economics interact: a framework applicable to both less developed countries and the developed world--Jacket. |
| economic analysis of the law: Law, Economics, and Game Theory John Cirace, 2020-07-06 This book considers three relationships: law and economics; economics and game theory; and game theory and law. Economists teach lawyers that economic principles cut across and integrate seemingly different legal subjects such as contracts, torts, and property. Correspondingly, lawyers teach economists that legal rationality is a separate and distinct decision-making process that can be formalized by behavioral rules that are parallel to and comparable with the behavioral rules of economic rationality, that efficiency often must be constrained by legal goals such as equal protection of the laws, due process, and horizontal and distributional equity, and that the general case methodology of economics vs. the hard case methodology of law for determining the truth or falsity of economic theories and theorems sometimes conflict. Economics and Game Theory: Law and economics books focus on economic analysis of judges’ decisions in common law cases and have been mostly limited to contracts, torts, property, criminal law, and suit and settlement. There is usually no discussion of the many areas of law that require cooperative action such as is needed to provide economic infrastructure, control public “bad” type externalities, and make legislation. Game theory provides the bridge between competitive markets and the missing discussion of cooperative action in law and economics. How? Competitive markets are examples (subset) of the Prisoners’ Dilemma, which explains the conflict between individual self-interested behavior and cooperation both in economic markets and in legislative bodies and demonstrates the need for social infrastructure and regulation of pollution and global warming. Game Theory and Law: Lawsuits usually involve litigation between two parties, not the myriad participants in markets, so the assumption of self-interest constrained by markets does not carry over to legal disputes involving one-on-one bargaining in which the law gives one party superior bargaining power. Game theory models predict the effect of different legal institutions, rights, and rules on the outcome of such bargaining. Game theory also has a natural four-model framework which is used in this book to analyze the law and economics of civil obligation, which consists of torts (negligence), contracts, and unjust enrichment. |
| economic analysis of the law: Public Interest Law Burton Allen Weisbrod, Joel F. Handler, Neil K. Komesar, 1978-01-01 Monographic compilation of essays on public interest, law activities in the USA - presents theoretical analysis of failure of government policy to enhance public interest law, firm behaviour and volume of business, presents case studies in interest group advocacy for environmental protection, housing, employment, sex discrimination, consumer protection, occupational safety and occupational health, etc., and includes jurisprudence. Graphs, references and statistical tables. |
| economic analysis of the law: Law, Economics, and Conflict Kaushik Basu, Robert C. Hockett, 2021-08-15 In Law, Economics, and Conflict, Kaushik Basu and Robert C. Hockett bring together international experts to offer new perspectives on how to take analytic tools from the realm of academic research out into the real world to address pressing policy questions. As the essays discuss, political polarization, regional conflicts, climate change, and the dramatic technological breakthroughs of the digital age have all left the standard tools of regulation floundering in the twenty-first century. These failures have, in turn, precipitated significant questions about the fundamentals of law and economics. The contributors address law and economics in diverse settings and situations, including central banking and the use of capital controls, fighting corruption in China, rural credit markets in India, pawnshops in the United States, the limitations of antitrust law, and the role of international monetary regimes. Collectively, the essays in Law, Economics, and Conflict rethink how the insights of law and economics can inform policies that provide individuals with the space and means to work, innovate, and prosper—while guiding states and international organization to regulate in ways that limit conflict, reduce national and global inequality, and ensure fairness. Contributors: Kaushik Basu; Kimberly Bolch; University of Oxford; Marieke Bos, Stockholm School of Economics; Susan Payne Carter, US Military Academy at West Point; Peter Cornelisse, Erasmus University Rotterdam; Gaël Giraud, Georgetown University; Nicole Hassoun, Binghamton University; Robert C. Hockett; Karla Hoff, Columbia University and World Bank; Yair Listokin, Yale Law School; Cheryl Long, Xiamen University and Wang Yanan Institute for Study of Economics (WISE); Luis Felipe López-Calva, UN Development Programme; Célestin Monga, Harvard University; Paige Marta Skiba, Vanderbilt Law School; Anand V. Swamy, Williams College; Erik Thorbecke, Cornell University; James Walsh, University of Oxford. Contributors: Kimberly B. Bolch, Marieke Bos, Susan Payne Carter, Peter A. Cornelisse, Gaël Giraud, Nicole Hassoun, Karla Hoff, Yair Listokin, Cheryl Long, Luis F. López-Calva, Célestin Monga, Paige Marta Skiba, Anand V. Swamy, Erik Thorbecke, James Walsh |
| economic analysis of the law: Algorithmic Antitrust Aurelien Portuese, 2022-01-21 Algorithms are ubiquitous in our daily lives. They affect the way we shop, interact, and make exchanges on the marketplace. In this regard, algorithms can also shape competition on the marketplace. Companies employ algorithms as technologically innovative tools in an effort to edge out competitors. Antitrust agencies have increasingly recognized the competitive benefits, but also competitive risks that algorithms entail. Over the last few years, many algorithm-driven companies in the digital economy have been investigated, prosecuted and fined, mostly for allegedly unfair algorithm design. Legislative proposals aim at regulating the way algorithms shape competition. Consequently, a so-called “algorithmic antitrust” theory and practice have also emerged. This book provides a more innovation-driven perspective on the way antitrust agencies should approach algorithmic antitrust. To date, the analysis of algorithmic antitrust has predominantly been shaped by pessimistic approaches to the risks of algorithms on the competitive environment. With the benefit of the lessons learned over the last few years, this book assesses whether these risks have actually materialized and whether antitrust laws need to be adapted accordingly. Effective algorithmic antitrust requires to adequately assess the pro- and anti-competitive effects of algorithms on the basis of concrete evidence and innovation-related concerns. With a particular emphasis on the European perspective, this book brings together experts and scrutinizes on the implications of algorithmic antitrust for regulation and innovation. |
| economic analysis of the law: Encyclopedia of Law and Economics Jürgen Georg Backhaus, 2018-02-15 Law and Economics deals with the economic analysis of legal relations, legal provisions, laws and regulations and is a research field which has a long tradition in economics. It was lost after the expulsion of some of the leading economists from Germany during 1933 to 1938, but then revived in Chicago. Both the subject of Law of Economics and the need for a concise Encyclopedia is particularly relevant in Europe today. Currently in the European Union there are several different legal cultures: the Anglo-Saxon legal framework, the German legal framework, which for example also includes Greece, and the Roman legal family—three jurisdictions which have to be covered with one and the same theory. In the EU, the task of the European Commission to interact with the various European jurisdictions means different legal cultures collaborating and some degree of harmonization is necessary. The result is an immediate need, if only for the science, to show how a given problem is solved in each legal tradition and jurisdiction. This Encyclopedia provides both a common language and precise definitions in the field, which will be useful in the future to avoid misunderstandings during harmonization of EU Law |
Economic Analysis of Law
This is a survey of the field of economic analysis of law, focusing on the work of economists. The survey covers the three central areas of civil law — liability for accidents (tort law), property …
Economic Analysis of Contract Law After Three Decades: …
Modern economic analysis of contract law began about thirty years ago and, many scholars would agree, has become the dominant academic style of contract theory. Traditional doctrinal …
The Economic Analysis of Law: The Dominant Methodology …
The economic Analysis of Law was crowned as "widely considered the most important development in legal thought in the last fifty years" by William M. Landes, "The Empirical Side …
Readings and materials for economic analysis of law
WEEK 1: Introduction to-Economic Analysis of Law . Required Readings: (i) Posner, Chapter 1, "The Nature of Economic Reasoning", pp. 3-14 (ii) Posner, Chapter 2, "The Economic …
Economic Analysis of Law
Dictionary of Economics (Second Edition) surveys the economic analysis of five primary fields of law: property law; liability for accidents; contract law; litigation; and public enforcement and …
Posner's Economic Analysis of Law - JSTOR
economic principles while conducting a survey of the rules and institutions of the legal system, summarizing, and extending the applications of economics to law.
Law and Economics Versus Economic Analysis of Law - Boston …
Calabresi distinguishes Economic Analysis of Law and Law and Economics. Economic Analysis of Law, "uses economic theory to analyze the legal world... and, as a result of that examination, …
Economic Analysis in Law - Yale University
In this Essay, we aim to spotlight those aspects of normative law and economics that cross the po-rous boundary from discourses about law and take their place as integral, internal parts of …
Economic Analysis of Law - INFLIBNET Centre
The exploration commenced since 1960s. The economic analysis of law provided a new framework for analysing the assignment of property rights and liabilities in economic terms. It …
Law, Economic Analysis of - Stanford Law School
This article surveys the economic analysis of five primary fields of law: property law; liabil-ity for accidents; contract law; litigation; and public enforcement and criminal law. It also brie y …
ECONOMIC ANALYSIS OF CRIMINAL LAW
the economic analysis of law literature refer to the types of economic tools which are being employed—ranging from theoretical tools to empirical analysis which utilizes real-world data …
law-and-economics from the perspective of critical legal studies
Critical legal studies was a left-wing political/academic movement that now exists only as a school of thought in legal academia. Between the late 1970s and the late 1980s, a few of us produced …
Foundations of Economic Analysis of Law - JSTOR
Steven Shavell's Foundations of Economic Analysis of Law (Harvard University Press, 2004) is a major theoretical contribution to "law and economics," the applied field of economics that …
What the economic analysis of law can't do - pitfalls and …
Following a brief overview of the economic analysis of law, with references to utilitarianism, the Chicago School and their modern spin-offs, this article will attempt to convey the limitations …
Efficiency and Equality in Economic Analysis of Law
Economic Analysis of Law: A European Perspective (Cheltenham, U.K.: Elgar 2005) Bruce Chapman Faculty of Law, University of Toronto bruce.chapman@utoronto.ca Economic …
The Ideology of the Economic Analysis of Law - JSTOR
Posner, having found that economic analysis is a powerful tool for understanding-and for criticizing-the law, has used this tech-nique to illuminate problems and rules governing almost …
The Normative Basis of the Economic Analysis of Law - Yale …
The economic analysis of law has taken a decidedly normative turn, especially in the hands of its legally trained advocates. Two forms of normative economic analysis have emerged. One form …
Economic Analysis of Law - ResearchGate
What Is an Economic Analysis of Law By contrast with “law and economics” presented above, an economic analysis of law implies a radical change in the object of study. The focus
Introduction to the Economic Analysis of Law - NetSuite
To be sure, economic analysis of law has also generated a literature on how legal rules should develop based on specified normative criteria, typically associated with concepts of efficiency. …
AN ECONOMIC ANALYSIS OF LAW VERSUS EQUITY
Isaac Ehrlich & Richard Posner, An Economic Analysis of Legal Rulemaking, J. Legal Stud. 257, 263 (1974). For a discussion, see Carol M. Rose, Crystals and Mud in Property Law, 40 Stan. …
Economic Analysis of Law
This is a survey of the field of economic analysis of law, focusing on the work of economists. The survey covers the three central areas of civil law — liability for accidents (tort law), property …
Economic Analysis of Contract Law After Three Decades: …
Modern economic analysis of contract law began about thirty years ago and, many scholars would agree, has become the dominant academic style of contract theory. Traditional doctrinal …
The Economic Analysis of Law: The Dominant Methodology …
The economic Analysis of Law was crowned as "widely considered the most important development in legal thought in the last fifty years" by William M. Landes, "The Empirical Side …
Readings and materials for economic analysis of law
WEEK 1: Introduction to-Economic Analysis of Law . Required Readings: (i) Posner, Chapter 1, "The Nature of Economic Reasoning", pp. 3-14 (ii) Posner, Chapter 2, "The Economic …
Economic Analysis of Law
Dictionary of Economics (Second Edition) surveys the economic analysis of five primary fields of law: property law; liability for accidents; contract law; litigation; and public enforcement and …
Posner's Economic Analysis of Law - JSTOR
economic principles while conducting a survey of the rules and institutions of the legal system, summarizing, and extending the applications of economics to law.
Law and Economics Versus Economic Analysis of Law
Calabresi distinguishes Economic Analysis of Law and Law and Economics. Economic Analysis of Law, "uses economic theory to analyze the legal world... and, as a result of that examination, …
Economic Analysis in Law - Yale University
In this Essay, we aim to spotlight those aspects of normative law and economics that cross the po-rous boundary from discourses about law and take their place as integral, internal parts of …
Economic Analysis of Law - INFLIBNET Centre
The exploration commenced since 1960s. The economic analysis of law provided a new framework for analysing the assignment of property rights and liabilities in economic terms. It …
Law, Economic Analysis of - Stanford Law School
This article surveys the economic analysis of five primary fields of law: property law; liabil-ity for accidents; contract law; litigation; and public enforcement and criminal law. It also brie y …
ECONOMIC ANALYSIS OF CRIMINAL LAW
the economic analysis of law literature refer to the types of economic tools which are being employed—ranging from theoretical tools to empirical analysis which utilizes real-world data …
law-and-economics from the perspective of critical legal studies
Critical legal studies was a left-wing political/academic movement that now exists only as a school of thought in legal academia. Between the late 1970s and the late 1980s, a few of us …
Foundations of Economic Analysis of Law - JSTOR
Steven Shavell's Foundations of Economic Analysis of Law (Harvard University Press, 2004) is a major theoretical contribution to "law and economics," the applied field of economics that …
What the economic analysis of law can't do - pitfalls and …
Following a brief overview of the economic analysis of law, with references to utilitarianism, the Chicago School and their modern spin-offs, this article will attempt to convey the limitations …
Efficiency and Equality in Economic Analysis of Law
Economic Analysis of Law: A European Perspective (Cheltenham, U.K.: Elgar 2005) Bruce Chapman Faculty of Law, University of Toronto bruce.chapman@utoronto.ca Economic …
The Ideology of the Economic Analysis of Law - JSTOR
Posner, having found that economic analysis is a powerful tool for understanding-and for criticizing-the law, has used this tech-nique to illuminate problems and rules governing almost …
The Normative Basis of the Economic Analysis of Law - Yale …
The economic analysis of law has taken a decidedly normative turn, especially in the hands of its legally trained advocates. Two forms of normative economic analysis have emerged. One form …
Economic Analysis of Law - ResearchGate
What Is an Economic Analysis of Law By contrast with “law and economics” presented above, an economic analysis of law implies a radical change in the object of study. The focus
Introduction to the Economic Analysis of Law - NetSuite
To be sure, economic analysis of law has also generated a literature on how legal rules should develop based on specified normative criteria, typically associated with concepts of efficiency. …
AN ECONOMIC ANALYSIS OF LAW VERSUS EQUITY
Isaac Ehrlich & Richard Posner, An Economic Analysis of Legal Rulemaking, J. Legal Stud. 257, 263 (1974). For a discussion, see Carol M. Rose, Crystals and Mud in Property Law, 40 Stan. …
