Chapter 1: Principles of Microeconomics (I)
A Basic Principle: the Fungibility of Money
Cost
Demand Curves and Supply Curves
The Equilibrium of a Competitive Market
Price Ceilings
The Market for Lawyers
The Factor Market
The Effects of a Tax
The Effects of a Subsidy
Elasticities
Income and Substitution Effects
Chapter 2: Principles of Microeconomics (II)
Monopolies and Cartels
Relation Between Marginal and Average Amounts
Cartels
Game Theory and the Prisoners' Dilemma
Rent-Seeking Behavior
Capital; Human Capital
The Present Value of Future Payments
Interest Rates
Efficient Capital Markets
Externalities
Attitudes Toward Risk
Markets with Incomplete Information: Moral Hazard and Adverse Selection
Public Goods
Appendix 2.1: Continuous Compounding
Chapter 3: Introduction to the Legal System
Litigation and the Court System
Precedents and the Common Law
How the Supreme Court Decides Whether to Grant Certiorari
Different Standards of Proof
The U.S. Constitution
The Division of Jurisdiction Between Federal and State Courts
Chapter 4: Property Law
Efficiency
Transactions Costs
Bilateral Monopoly
How Disputes are Decided by Law
The Coase Theorem
Eminent Domain
Self-Assessment
How the Entitlement Should be Protected
How to Determine Ownership of Property
Intellectual Property
Chapter 5: Problems of Incomplete Property Rights
Inalienability
Problems When there are no Property Rights:
Problems When Property Rights are Divided:
Problems When Property Rights are Uncertain:
Limits on the Disposition of Property at Death:
Appendix 5.1: When Should a Tree be Harvested
Chapter 6: Informal Creation of Property Rights
Property Rights in Surfing
The Gold Rush
Sharecropping Contracts
Whaling Customs
The Division of Profits in Law Firms
The Shakers
Chapter 7: The Law of Contracts
The Economic Functions of the Law of Contracts
General Rules of Contract Law
The Common Law of Slavery
The Controversy Concerning Standard Form Contracts
Unconscionability
Remedies for Breach of Contract
The Lost-Volume or Expansible Seller
Specific Performance
Liquidated Damages and Penalties.
Chapter 8: Torts
Negligence
Strict Liability
The Learned Hand Rule
The Law of Rescue
The Collateral Source Rule
Comparative Negligence
More on Strict Liability
Medical Malpractice
Contribution
Damages
Subrogation
Whether Dangerous Conduct Should Be Controlled By Tort Law or Regulation
No-Fault Automobile Insurance
Chapter 9: The Economics of Litigation
An Optimal Judicial System
The Standard of Proof for a Preliminary Injunction
The Economic Model of Litigation
Pre-trial Discovery
Procedural Rules Which Make Litigation More Efficient
Agency Problems
The English Rule
Court Delay
Expert Witnesses
Determining the Quality of a Judge (or a Court)
Whether the Common Law Is Efficient
Rules of Collateral Estoppel
The Jury
Analyzing Litigation with Game Theory
Chapter 10: Criminal Law
The Economic Model of Crime and Punishment
The Optimal Type of Punishment
An Application: Megan's Laws
Evaluating the System of Law Enforcement
Measuring the Determinants of Crime and the Benefits of Law Enforcement
Markets for Crime
Externalities Resulting From Precautions Taken Against Crime; Lojack
The Economics of Gun Ownership and Use
Factors Affecting the Quality of Law Enforcement
Public Versus Private Enforcement of Law
Chapter 11: Corporations and Financial Markets
The Characteristics of the Corporation
Common and Preferred Stock
Potential Conflicts Between Managers and Stockholders:
Compensation of Investment Advisors
The Competition to be the State of Incorporation
The Prohibition of Insider Trading
Conflicts Among Shareholders
Deposit Insurance and Moral Hazard
Bankruptcy Law
The Economics of Bank Regulation
Chapter 12: Taxation
The Effects of a Death Tax
Social Security
The Effect on Savings of Tax Rules Concerning Interest
The Proposal for a Tax on Consumption
Charitable Contributions
Depreciation
Percentage Depletion
The Subsidy for Residential Housing
The Social Cost of the Tax Exemption of Interest on Municipal Bonds
Chapter 13: Topics in Labor Law
Covenants Not to Compete
General and Firm-Specific Human Capital
Maximum and Minimum Wages
Employment Protection Laws
Regulation of Pensions
Comparable Worth
Glossary
Notes
Index
; Cover; Half Title; Title Page; Copyright Page; Dedication; Table of Contents; List of figures; List of tables; Preface; Acknowledgments; Table of cases; 1 Principles of microeconomics (I); A basic principle: the fungibility of money; Cost; Demand curves and supply curves; The equilibrium of a competitive market; Price ceilings; The market for lawyers; The factor market; The effects of a tax; The effects of a subsidy; Elasticities; Income and substitution effects; 2 Principles of microeconomics (II); Monopolies and cartels; Relation between marginal and average amounts; Cartels; Game theory and the prisoners' dilemmaRent-seeking behavior; Capital; human capital; The present value of future payments; Interest rates; Efficient capital markets; Externalities; Attitudes toward risk; Markets with incomplete information; Public goods; Appendix 2.1: Continuous compounding; 3 Introduction to the legal system; Litigation and the court system; Precedents and the common law; Different standards of proof; Quantifying the standard of proof; The U.S. Constitution; The division of jurisdiction between federal and state courts; 4 Property law; Efficiency; Transaction costs; Bilateral monopolyHow disputes are decided by law; The Coase Theorem; Eminent domain; Self-assessment; How the entitlement should be protected; How to determine ownership of property; Intellectual property; 5 Problems of incomplete property rights; Inalienability; Problems when there are no property rights; Problems when property rights are divided; Problems when property rights are uncertain; Limits on the disposition of property at death; Appendix 5.1: When should a tree be harvested?; 6 Informal creation of property rights; Property rights in surfing; The Gold Rush; Sharecropping contracts; Whaling customsThe division of profits in law firms; The Shakers; 7 The law of contracts; The economic functions of the law of contracts; General rules of contract law; The common law of slavery; The controversy concerning standard form contracts; Unconscionability; Remedies for breach of contract; The lost-volume or expansible seller; Specific performance; Liquidated damages and penalties; 8 Torts; Negligence; Strict liability; The Learned Hand rule; The law of rescue; The collateral source rule; Comparative negligence; More on strict liability; Medical malpractice; Contribution; Damages; SubrogationSubrogation and potential moral hazard of tort victims; The economics of subrogation; Moral hazard arising from abolition of the collateral source rule; A note on trial strategy: should the jury know about insurance?; Whether dangerous conduct should be controlled by tort law or regulation; No-fault automobile insurance; 9 The economics of litigation; An optimal judicial system; The standard of proof for a preliminary injunction; The economic model of litigation; Pre-trial discovery; Procedural rules which make litigation more efficient; Agency problems; Class actions N2 - The third edition of Economic Foundations of Law introduces readers to the economic analysis of the major areas of the law: property law, torts, contracts, criminal law, civil procedure, corporation law and financial markets, taxation, and labor law. No prior knowledge of law is required, but a prior course in the principles of microeconomics would be quite helpful. The text opens with a review of the basic principles of price theory and an overview of the legal system, to ensure readers are equipped with the tools necessary for economic analysis of the law. The third edition provides expanded or new coverage of key topics including intellectual property law, how the creation of new forms of property rights affects the conservation of species such as elephants and fish, controversies involving liability for medical malpractice and class actions, the transformation of personal injury litigation by the intervention of insurance companies as plaintiffs, how to predict the outcome of litigation with game theory, an economic analysis of the ownership and use of guns, bankruptcy law, and the economics of bank regulation. Comprehensive and well-written, this text is a compelling introduction to law and economics that is accessible to both economics and law students UR - https://www.taylorfrancis.com/books/9781351239783 UR - http://www.oclc.org/content/dam/oclc/forms/terms/vbrl-201703.pdf ER -