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LAW 528

Economic Analysis of Law

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[ Academia ] Education Law: General

Why it is relevant for ...

[ Academia ] as a Related Elective for those interested in Economics : For those students considering an academic career involving some amount of policy work or policy studies, an understanding of economic analysis is essential. This course considers the evolution of legal rules affecting commercial activities.

General course Description:

(Same as PublPol 302B).This course will provide a broad overview of the scholarly field known as "law and economics." The focus will be on how legal rules and institutions can correct market failures. We will discuss the economic function of contracts and, when contracts fail or are not feasible, the role of legal remedies to resolve disputes. We will also discuss at some length the choice between encouraging private parties to initiate legal actions to correct externalities and governmental actors, such as regulatory authorities. Extensive attention will be given to the economics of litigation, and to how private incentives to bring lawsuits differs from the social value of litigation. The economic motive to commit crimes, and the optimal governmental response to crime, will be studied in depth. Specific topics within the preceding broad themes include: the Coase Theorem; the tradeoff between the certainty and severity of punishment; the choice between ex ante and ex post sanctions; negligence versus strict liability; property rules; remedies for breach of contract; and the American rule versus the English rule for allocating litigation costs. There is no formal economics prerequisite to take this course, though some prior training in economics will be helpful.

Course Style: A Substantive/ Perspective course looks at law from an external or non-traditional standpoint.

Course Frequency: Varied, check w/ registrar

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