Economic Analysis of Law

3 credits · Law

(Same as PUBLPOL 202B.) Core course for Public Policy master's students. How legal rules and institutions can correct market failures.The economic function of contracts; role of legal remedies to resolve disputes when contracts fail. The choice between encouraging private parties to initiate legal actions to correct externalities and governmental actors such as regulatory authorities. Economics of litigation; how private incentives to bring lawsuits differ from the social value of litigation. Economic motives to commit crimes; optimal governmental response to crime. Prerequisites: intermediate-level microeconomics; some calculus.