LAW & ECONOMICS METHODOLOGY

The aim of the course “Law and Economics Methodology” is to analyse the interactions between economic systems and institutional frameworks and to understand the influence of rules and regulations on the way individuals, businesses, markets and public administrations behave and operate respectively. The purpose of the course is to gain the ability to analyze the effect of a law or aspect of the legal system on behavior, and judge which law will lead to better outcomes in a particular setting

After this course, the student is able to:

• understand basic features of the legal approaches and theories, their origins, and their key differences, as well as particular legal doctrines that apply in particular situations;
• Understand the fundamental differences of a legal and economic perspective on social/societal phenomena (problems of social organisation);
• apply basic (micro)economic ideas and models to particular legal settings;
• analyze the effect of a law or aspect of the legal system on behavior, and judge which law will lead to better outcomes in a particular setting;
• Apply and develop an interdisciplinary mindset
• Reflect on real-life situations from a different entry point of analysis

The student is expected to have some basic foundational knowledge of both economic theories and legal background

The course ‘Law and Economics Methodology’ begins with a series of ‘foundational’ sessions that introduce the students to fundamental legal and economic theories and perspectives. The purpose of these sessions is to both highlight the potentially deep differences between a legal and an economic perspective and identify how and where a joint legal and economic perspective may be of added value. To do so we will (re)visit some of the fundamental legal and economic approaches and juxtapose the approaches in interactive sessions with the students.
The second part of the course shall be concerned with the actual methodologies that are employed within legal and economic approaches and develop methodological skills. During working seminars students will become acquitted with the economic analysis of legal rules and institutions with emphases on how different areas of law influence individual incentives. Specific topics include: (1) property, (2) contracts, (3) torts, (4) legal procedure and (5) criminal law.

The textbook is Law and Economics (Sixth Edition), by Robert Cooter and Thomas Ulen (Addison-Wesley, 2007), available for free: https://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=1001&context=books
Additional literature will be announced at the course

Open questions (case studies)

The course will be a mix of lectures and seminars

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