Introduction to Law and Economics

These flashcards cover key concepts from the introduction to law and economics, focusing on the interplay between economic theory and legal practice.

What does the law and economics movement seek to establish about the study of law?

It aims to place the study of law on a scientific basis, with coherent theory, precise hypotheses, and empirical tests.

Who are the major contributors mentioned in the development of law and economics?

Key figures include Ronald H. Coase and Guido Calabresi.

What limited areas did law previously confine the use of economics to?

Antitrust law, regulated industries, tax law, and determining monetary damages.

What is the primary question posed by the economic analysis of law regarding legal sanctions?

How will a sanction affect behavior?

What principle underlies the economic approach to law regarding efficiency?

Efficiency is relevant to policymaking, as it aids in determining the best allocation of resources.

What does the Least-Cost Risk-Bearer principle in law imply?

Legal rules should allocate risks to the party who can bear them at the least cost.

What impact has economics had on legal scholarship and practice by 1990?

It had improved economic analysis presence in law schools and led to law reviews publishing many articles using the economic approach.

What is a major benefit of applying economical analysis to legal practices?

It can help in predicting behavior and outcomes, leading to more efficient legal results.

What are some of the criticisms of redistribution through private law?

Imprecise targeting, unpredictable consequences, high transaction costs, and greater market distortions.

What role do euphemisms and moral framing play in the legal discourse, according to economists?

They help lawyers persuade people and articulate legal matters with a moral weight.

Why should lawyers study economics according to the lecture notes?

To understand behavioral consequences of law and improve their theoretical approaches.

How does economics help in evaluating laws according to the text?

By providing tools for assessing efficiency and distributional impacts of legal rules.