Law and EconomicsThis best-selling text continues to provide studentswith a clear method for applying economic analysis to the study of legal rules and institutions. Following an overview of the tools of economic analysis for law students and the tools of legal analysis for economics students, uniquely paired chapters offer a combination of clear theoretical analysis followed by practical application. Economic theories in four core areas of the law are used to explain and analyze topics, illustrating how microeconomic theory can be used to increase understanding of the law and improve public policy. The Third Edition has been thoroughly revised, improving the clarity and flow in exposition, as well as updating the data and examples. *Added examples and cases help to further clarify economic applications. *Unique two-chapter sequences set up the economic model in the first chapter, and then apply the model in the second chapter. *Four key areas of the law are covered: property, contracts, torts, and crime and punishment. *Cases from previous editions and other materials will be posted on the Web. *Learning Aids: Questions, Boxed Inserts, Chapter-End References, Extensive Footnotes, Answers to questi |
Contents
AN INTRODUCTION TO LAW | 1 |
A REVIEW OF MICROECONOMIC THEORY | 9 |
LEGAL INSTITUTIONS | 57 |
Copyright | |
14 other sections not shown
Common terms and phrases
accident action allocate alternative amount analysis answer assume bargaining benefit breach buyer called cause chapter claims commit common compensation Consequently consider consumers contract cooperation court create crime criminal curve damages defendant demand determine deterrence develop discussed economic effect efficient enforce equals error example exchange expected explain fact Figure firm given gives harm illustrate incentives income increase injurer investment judge land lawyers less liability litigation loss marginal maximize means negligence offer optimal owner parties payoff perfect performance person plaintiff player precaution probability problem production profits promise punishment purchase QUESTION rational reasonable receive reduce regulations relationship reliance remedy requires result risk rule settle social standard supply Suppose surplus theory tion tort transaction costs trial United usually utility victim