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 |
From inside the book
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Page 337
... litigation on potential victims . If victims must incur a cost to assert their claims for compensation , then they may assert fewer claims . Consider an extreme case in which litigation costs exceed the ex- pected compensatory damages ...
... litigation on potential victims . If victims must incur a cost to assert their claims for compensation , then they may assert fewer claims . Consider an extreme case in which litigation costs exceed the ex- pected compensatory damages ...
Page 379
... litigation costs , EVT remains the same under the European rule as un- der the American rule . ) 2 Having computed ... litigation costs of $ 20 with certainty , whereas un- der the European rule , the plaintiff pays no litigation costs ...
... litigation costs , EVT remains the same under the European rule as un- der the American rule . ) 2 Having computed ... litigation costs of $ 20 with certainty , whereas un- der the European rule , the plaintiff pays no litigation costs ...
Page 420
... litigation works like a strainer that catches inefficient laws while allowing efficient laws to slip past . The law , being repeat- edly sieved , becomes more efficient with the passage of time . The process of filter- ing out ...
... litigation works like a strainer that catches inefficient laws while allowing efficient laws to slip past . The law , being repeat- edly sieved , becomes more efficient with the passage of time . The process of filter- ing out ...
Contents
A REVIEW OF MICROECONOMIC THEORY | 9 |
TOPICS IN THE ECONOMICS OF CRIME | 12 |
AN INTRODUCTION TO LAW | 57 |
Copyright | |
14 other sections not shown
Common terms and phrases
accident allocation amount assume award bargain theory benefit breach buyer cause chapter Coase theorem common law comparative negligence compensatory damages Consequently consumers contract law court crime criminal curve defendant deterrence disputes economic theory economists efficiency requires enforce equals error example exchange expected monetary value expected value explained external fact farmer Figure filing game theory harm illustrate incentives income increase indifference curve injurer injurer's investment judge lawyers legal standard litigation loss marginal cost maximize negligence rule nomic optimal owner ownership Pareto efficiency parties patent payoff perfect expectation damages performance plaintiff probability production profits promise promisor property law property rights punishment purchase QUESTION rancher rational relationship reliance remedy risk rule of strict second player seller settlement social costs strict liability Suppose threat value tion tort law tort liability transaction costs trial United utility victim whereas zero