"The field emerged in the United States during the early 1960s, primarily from the work of scholars from the Chicago school of economics such as Aaron Director, George Stigler, and Ronald Coase."
The study of the interaction between legal rules and economic behavior, including how legal rules affect economic efficiency, incentives, and outcomes.
Property rights: The legal framework that defines and protects the rights of individuals and organizations to possess, use, and dispose of property.
Contract theory: The economic and legal analysis of contracts and transactions, including issues such as asymmetrical information and the role of contract law in promoting efficiency.
Tort law: The legal framework governing civil wrongs, such as negligence and intentional torts, and the economic analysis of tort law.
Antitrust law: The legal framework governing competition and monopolies, and the economic analysis of antitrust law.
Intellectual property law: The legal framework governing patents, copyrights, and trademarks, and the economic analysis of intellectual property law.
Behavioral law and economics: The study of the psychological and cognitive factors that affect decision-making in legal contexts, and their implications for legal policy.
Environmental law and economics: The study of the economic and legal issues surrounding natural resources, pollution, and environmental regulation.
Tax law and economics: The economic analysis of taxation and the legal framework governing tax systems.
Corporate law and finance: The legal framework governing corporations and their financing, and the economic analysis of corporate law and finance.
International trade law and economics: The economic and legal issues surrounding international trade, including trade agreements, tariffs, and trade disputes.
Coasean Theory: Named after Nobel laureate Ronald Coase, this theory emphasizes the importance of transaction costs in shaping the behavior of market participants.
Kaldor-Hicks Efficiency: This theory argues that a policy change is efficient as long as the total benefits to winners outweigh the losses to losers. It is often used to evaluate regulatory proposals.
Property Rights Theory: This theory suggests that clearly defined property rights facilitate efficient resource allocation between parties, and emphasize the necessity of clearly defined property rights.
Public Choice Theory: Public choice theory studies the behavior and incentives of political actors and institutions, both elected and unelected, and how they affect the law's implementation and effectiveness.
Behavioral Law and Economics: This theory incorporates insights from psychology and behavioral economics into legal analysis, recognizing that human behavior is often irrational or influenced by non-economic factors.
Law and Development: This theory focuses on the role of legal institutions and policies in fostering economic growth and development in developing countries.
Game Theory: Game theory is used to analyze strategic interactions between parties, and their effect on legal and economic outcomes.
Law and Finance: Law and finance study the institutional and legal frameworks that govern financial markets and transactions.
Empirical Law and Economics: This theory uses empirical evidence from statistical analysis to evaluate the effectiveness of legal interventions and policies.
"The field uses economics concepts to explain the effects of laws, to assess which legal rules are economically efficient, and to predict which legal rules will be promulgated."
"Law and economics is the application of microeconomic theory to the analysis of law."
"There are two major branches of law and economics; one based on the application of the methods and theories of neoclassical economics to the positive and normative analysis of the law, and a second branch which focuses on an institutional analysis of law and legal institutions."
"Some scholars associated with the neoclassical approach include Aaron Director, George Stigler, and Ronald Coase."
"The second branch of law and economics focuses on an institutional analysis of law and legal institutions, with a broader focus on economic, political, and social outcomes, and overlapping with analyses of the institutions of politics and governance."
"One branch applies the methods and theories of neoclassical economics to the positive and normative analysis of the law."
"The field uses economics concepts to explain the effects of laws."
"It assesses which legal rules are economically efficient."
"It predicts which legal rules will be promulgated."
"Scholars from the Chicago school of economics such as Aaron Director, George Stigler, and Ronald Coase."
"The field emerged in the United States."
"The neoclassical approach applies the methods and theories of neoclassical economics."
"The focus is on economic, political, and social outcomes, overlapping with analyses of the institutions of politics and governance."
"The field emerged in the United States during the early 1960s."
"The field uses economics concepts to explain the effects of laws."
"It assesses which legal rules are economically efficient."
"There are two main branches of law and economics based on different analytical approaches."
"One branch emphasizes the positive and normative analysis of the law, while the other focuses on institutional analysis."
"The institutional analysis of law and legal institutions overlaps with analyses of the institutions of politics and governance."