Law and Economics applies economic analysis to law and legal issues. The course uses both positive analysis, employing price theory to predict the consequences of legal rules: how they affect the behaviour of individuals and groups; and normative analysis: using welfare economics to evaluate legal rules, especially their efficiency effects.

Legal issues examined in the course include property law, tort law, contract law, criminal law, and litigation and settlement. Other topics will be examined as time permits. One attraction of economic analysis of the law is that it provides a unified vision of the law, tying together diverse areas of law into a common theoretical structure.

On satisfying the requirements for this course, students should have the knowledge and skills to:
• Recognise the economic issues in a legal problem and apply the economic way of thinking to analyse it.
• Assess the efficiency effects of legal rules and policies

Two 1-hour in-term examinations, and a 3-hour final examination.

Two lectures and one tutorial per week.

Completion of or concurrent enrolment in ECON2101/2111 Microeconomics 2 (P or H).

Friedman, D (2000) Law's Order: What Economics Has to Do with Law and Why it Matters, www.davidfriedman.com/laws_order/index: Princeton University Press

Please refer to Course Website