Economic Principles of Law (Law in Context S.)

Economic Principles of Law, first published in 2007, applies economics to the doctrines, rules and remedies of the common law. In plain English and using non-technical analysis, it offers an introduction and exposition of the 'economic approach' to law - one of the most exciting and vibrant fields of legal scholarship and applied economics. Beginning with a brief history of the field, it sets out the basic economic concepts useful to lawyers, and applies these to assess the core areas of the common law - property, contract, tort and crime - with particular emphasis on their doctrinal structure and remedies. This is done using leading cases drawn from the birthplace of the common law (England & Wales) and other common law jurisdictions. The book serves as a primer to the wider use of economics which has become increasingly important for law students, lawyers, legislators, regulators and those concerned with our legal system generally. Cover 1 Half-title 3 Title 5 Copyright 6 Dedication 7 Contents 9 Figures 10 Tables 11 Preface 13 Table of cases 15 Chapter 1 Introduction 19 a short history of law and economics 21 legal vs economic reasoning 26 the common law 27 Structure of the common law 27 Why would the common law be efficient? 30 further topics and reading 35 Chapter 2 The economic approach 37 choice and scarcity 37 Economic rationality 38 Incentive analysis 40 benefits and costs 42 Benefits: willingness to pay (WTP) 42 Valuing intangibles 44 Costs as lost opportunities 45 Costs vs transfers 46 Time value of money: discounting and interest 47 Risk and uncertainty 48 economic efficiency 50 Three qualifications 51 The second best 51 Efficiency–wealth distribution link 52 Static vs. dynamic efficiency 53 markets 54 market failure 56 Monopoly 56 Externality 56 Public good 58 Asymmetric information 58 the coase theorem 59 The Theorem explained 59 Endowment effects 60 Transactions costs 65 Ten Coasean tenets 68 one view of the common law 71 further topics and reading 73 Chapter 3 Property 76 property rights theory 76 The case for property 76 The economics of property rights 78 Property as a bundle of rights 80 Exclusivity 81 Transferability 82 Appropriability 83 Divisibility 83 common property 83 Tragedy of the commons 84 creation of property rights 86 the role of property law 88 intellectual property rights 89 adverse possession 93 transfer of title 95 economics of incompatible property use 95 Nuisance bargains 97 Bargaining failure 100 Where bargaining is not possible 103 Summary 105 nuisance 105 Legal position 105 Physical vs amenity loss 106 The reasonableness test 107 Substantiality 107 Locality 108 Hypersensitivity 108 Social utility 110 coming to the nuisance65 111 remedies 113 Legal position 113 Economics of damages 114 Injunctions 117 trespass 119 riparian rights 121 further topics and reading 123 Chapter 4 Contract 127 the law 127 the economic framework 129 The economics of contracts 129 Types of contract and contract problems 132 the economics of contract law 137 The basics 137 Contract law as gap filling 139 Economic functions 143 sale of goods 145 Basics of market transactions 145 Market sanctions 147 Warranties 148 Standard form contracts 150 The lost volume ‘puzzle’ 151 consideration 153 Consideration in law 153 The pre-existing duty rule 155 Unilateral promises 159 disclosure and mistake 161 Economics of information 161 Pre-contractual disclosure 163 Mistake 164 Common mistake 165 Unilateral mistake 166 remoteness 166 frustration 167 duress 169 economics of remedies 171 The basics 172 Specific performance 173 Types of damages 174 Efficient breach 176 Efficient reliance 179 cost of cure/completion 181 liquidated damages, penalties and deposits 182 non-pecuniary damages 185 unjust enrichment 187 mitigation 190 relational contracts 191 contracts and competition 193 further topics and reading 196 Chapter 5 Tort 199 objectives 200 tort as contract 201 negligence principles 203 Hand test 204 economics of liability 208 Joint care 213 The activity test 214 reasonable man standard 217 Custom 218 Special skill 219 Minors 220 Errors and compliance 221 contributory negligence 221 strict liability 223 duty revisited 224 causation, foreseeability and remoteness 226 Foreseeability and Remoteness 227 Simultaneous joint torts 231 Successive torts 232 economic loss 232 product liability 237 employers’ liability 239 Employers’ liability law prior to 1880 240 Risk, negligence and common employment 240 Some further theory 243 Volenti and deterrence 245 death and personal injury damages 246 Meaning of ‘full compensation’ 246 Optimal deterrence damages 247 Future income losses 247 Death and WTP 250 Pain and suffering 251 exemplary damages 254 further topics and reading 256 Chapter 6 Crime 259 features of criminal law 259 concept of crime 260 deterrence 264 efficent penalities 267 Optimal deterrence 267 So why aren’t punishments draconian? 269 Actual criminal sanctions 272 mens rea and attempts 274 public vs private enforcement 275 plea bargaining 276 further topics and reading 279 Economic glossary 281 Select bibliography 287 TEXTS 287 ANTHOLOGIES 289 SURVEY ARTICLES 291 SPECIALIST LAW AND ECONOMICS JOURNALS 292 Index 293 Economic Principles Of Law Applies Economics To The Doctrines, Rules And Remedies Of The Common Law. In Plain English And Using Non-technical Analysis, It Offers An Introduction And Exposition Of The 'economic Approach' To Law - One Of The Most Exciting And Vibrant Fields Of Legal Scholarship And Applied Economics. The Book Serves As A Primer To The Wider Use Of Economics Which Has Become Increasingly Important For Law Students, Lawyers, Legislators, Regulators And Those Concerned With Our Legal System Generally.--book Jacket. The Economic Approach -- Property -- Contract -- Tort -- Crime. Cento G. Veljanovski. Includes Bibliographical References (p. 269-274) And Index.