Dnes' Economics of Law is a straightforward, up-to-date introduction to economics of law, with economic analysis and legal principles treated in a self-contained manner as the book progresses. Both lawyers and economists can use the book without prior knowledge of each other’s subject. This book includes timely coverage of the economic analysis of property, contract, criminal, tort, and procedural law with the emphasis placed on economics rather than on legal issues.

Chapter 1 The Economic Analysis of Law:

An Introduction 1

Some AppLications 3

Economic Efficiency 6

Avoiding 'Nirvana' Comparisons 8

Positive Law and Economics 9

PLan of This Book 10

Summary and Conclusions 10

Questions for Review 10

Notes on the Literature 11

Chapter 2 Property 15

Some Definitions 15

Economic AnaLysis of Property Rights 16

The Fishery 17

Rent Seeking 19

The Property-Rights Paradigm 20

The "WiLd" West 21

PubLic and Private Enterprise 25

PubLic Goods 26

Some Assorted Property Doctrines 28

InteLLectuaL Property 35

Summary and Condusions 41

Questions for Review 41

Notes on the Literature 42

Chapter 3 Conflicts over Property Rights 47

The Coase Theorem, Efficiency, and Distribution 47

ALternative Legal RuLes and the Incentive to Bargain 57

Least-Cost Avoidance (Property and LiabiLity RuLes) 58

Does Case Law RefLect Economic Considerations? 60

Servitudes 63

ReguLation of Land Use 66

Summary and Conclusions 72

Questions for Review 72

Notes on the Literature 73

Chapter 4 Contract Formation and EvoLution 77

The Nature of Contracts 77

Formation of Contracts 78

Gifts and Other Gratuitous Promises 84

UniLateraL Contracts 85

Hard Bargains and Unconscionability 86

Long-Term, ReLational Contracts 90

Summary and Conclusions 93

Questions for Review 93

Notes on the Literature 94

Chapter 5 Breach of Contract 97

Optimal Breach 97

Defenses Against Actions for Breach of Contract 98

Remedies for Breach of Contract 106

Optimal Precaution and ReLiance 115

Specific Performance 118

Summary end Conclusions 120

Questions for Review 121

Notes on the Literature 121

Chapter 6 Tort 125

What Creates a Tort? 125

The Economic AnaLysis of Accidents--

Least-Cost Avoidance 133

Standards of ResponsibiLity 134

Damages as a Remedy for Tort 141

No-FauLt ALternatives to Tort 143

Vicarious LiabiLity 144

Product LiabiLity 145

Summary and Conclusions 147

Qustions for Review

Notes on the Literayure

Chapter 7 The Economics of Crime 153

The Nature of Criminal Activity 153

Criminal Deterrence 154

Punishments 161

Drug Enforcement 166

Assorted Developments in Criminal Justice 167

Summary and Conclusions 171

Questions for Review 171

Notes on the Literature 171

Chapter 8 Contingent Fees, Cost Rules,

and Litigation 177

Contingent Fees 177

Cost Rules 181

Class Actions 183

Subsidizing Legal Costs 183

Litigation Nania? 185

Summary and Condusions 186

Questions for Review 186

Notes on the Literature 186

Chapter 9 Economics and Family Law 189

Comparative Advantage and the Incentive to Marry 189

Life-Profile Theory of Narriage 191

Do No-Fault Laws Encourage Divorce? 194

Reliance and Restitution 195

Modern Marriage, Insurance, and Prenuptial Agreements 196

Cohabitation and the Life-Profile Node[ 197

Parent and Child: Economic Perspectives 200

Adoption 202

Surrogacy 203

Summary and Conclusions 204

Questions for Review 204

Notes on the Literature 204

Cases, Statutes, and References 207

Index 221