Foundations of Economic Analysis of Law

What effects do laws have? Do individuals drive more cautiously, clear ice from sidewalks more diligently, and commit fewer crimes because of the threat of legal sanctions? Do corporations pollute less, market safer products, and obey contracts to avoid suit? And given the effects of laws, which are socially best? Such questions about the influence and desirability of laws have been investigated by legal scholars and economists in a new, rigorous, and systematic manner since the 1970s. Their approach, which is called economic, is widely considered to be intellectually compelling and to have revolutionized thinking about the law. In this book Steven Shavell provides an in-depth analysis and synthesis of the economic approach to the building blocks of our legal system, namely, property law, tort law, contract law, and criminal law. He also examines the litigation process as well as welfare economics and morality. Aimed at a broad audience, this book requires neither a legal background nor technical economics or mathematics to understand it. Because of its breadth, analytical clarity, and general accessibility, it is likely to serve as a definitive work in the economic analysis of law.

Preface 1. Introduction Part I. Property Law 2. Definition, Justification, and Emergence of Property Rights 3. Division of Property Rights 4. Acquisition and Transfer of Property 5. Conflict and Cooperation in the Use of Property: The Problem of Externalities 6. Public Property 7. Property Rights in Information Part II. Accident Law 8. Liability and Deterrence: Basic Theory 9. Liability and Deterrence: Firms 10. Extensions of the Analysis of Deterrence 11. Liability, Risk-Bearing, and Insurance 12. Liability and Administrative Costs Part III. Contract Law 13. Overview of Contracts 14. Contract Formation 15. Production Contracts 16. Other Types of Contract Part IV. Litigation and the Legal Process 17. Basic Theory of Litigation 18. Extensions of the Basic Theory 19. General Topics on the Legal Process Part V. Public Law Enforcement and Criminal Law 20. Deterrence with Monetary Sanctions 21. Deterrence with Nonmonetary Sanctions 22. Extensions of the Theory of Deterrence 23. Incapacitation, Rehabilitation, and Retribution 24. Criminal Law Part VI. General Structure of the Law 25. The General Structure of the Law and Its Optimality Part VII. Welfare Economics, Morality, and the Law 26. Welfare Economics and Morality 27. Implications for the Analysis of Law 28. Income Distributional Equity and the Law 29. Concluding Observations References Author Index Subject Index