Category Archives: Law and Economics

Givati and Kaplan, ‘Over-Reliance under Contractual Disgorgement’

Abstract: A well-known result in economic analysis of contract law is that expectation damages lead to over-reliance by the non-breaching party. Recently, the contractual disgorgement remedy has attracted much attention from scholars, yet no attempt has been made to analyze reliance investment under this remedy. In this article, we develop a model showing that under […]

‘The Economic Analysis of Law’

“Economic analysis of law applies the tools of microeconomic theory to the analysis of legal rules and institutions. Ronald Coase [1960] and Guido Calabresi [1961] are generally identified as the seminal articles but Commons [1924] and Hale [1952] among others had brought economic thinking to the study of law in the 1910s and 1920s. Richard […]

Florian Baumann, ‘Product Liability in Markets for Vertically Differentiated Products’

Abstract: This article shows that shifting losses from consumers with heterogeneous harm levels to vertically differentiated duopolists increases product safety levels, while narrowing the degree of product differentiation. Our setup features observable (but possibly nonverifiable) product safety levels and firms subject to strict liability according to a parametric liability specification. Firms’ expected liability payments depend […]

Yeşim Atamer, ‘Why Judicial Control of Price Terms in Consumer Contracts Might Not Always Be the Right Answer – Insights from Behavioural Law and Economics’

Abstract: Regulators everywhere are confronted with the question of how to react to contractual pricing structures that serve to hide rather than reveal the real cost of goods and services and thereby abuse limitations in the cognitive competences of consumers. Given that sellers/service providers systematically make use of insights from behavioural sciences to refine their […]

Portuese, Gough and Tanega, ‘The principle of legal certainty as a principle of economic efficiency’

Abstract: Legal certainty, a feature of the rule of law, constitutes a requirement for the operational necessities of market interactions. But, the compatibility of the principle of legal certainty with ideals such as liberalism and free market economy must not lead to the hastened conclusion that therefore the principle of legal certainty would be compatible […]

Lando and Schweizer, ‘Causality and Incentives with Multiple Tortfeasors’

Abstract: For a tortfeasor to be liable for a victim’s loss, the tortfeasor’s negligence must have caused the loss. In the context of multiple tortfeasors, this is generally taken to mean that but-for the tortfeasors negligence, the loss would not have occurred, given the acts by other tortfeasors. In the law and economics literature on […]

Larry DiMatteo, ‘Justice, Fault, and Efficiency in Contract Law’

Abstract: This article explores some of the core concepts that underlie contract law. It rejects the feasibility of a uniform theory of contract law including a critique of the economic analysis of contract law. The importance of efficient contract rules and efficient contracts is not disputed, but efficiency’s explanatory power is limited due to the […]

Henry Smith, ‘The Economics of Property Law’

Abstract: The economic analysis of property has made progress in areas of property closest to contracts and torts, where the assumption that legal rules can be studied in isolation has some plausibility. Property law is a system, and economic analysis can be used to capture the role of traditional notions of things, possession, and ownership. […]

Ignacio Cofone, ‘The Dynamic Effect of Information Privacy Law’

Abstract: Discussions of information privacy typically rely on the idea that there is a tradeoff between privacy and availability of information. But privacy, under some circumstances, can lead to creation of more information. In this article, I identify such circumstances by exploring the ex ante incentives created by entitlements to personal data and evaluating the […]

‘Sometimes, Information Wants to be Expensive’

Jonathan M Barnett, Three Quasi-Fallacies in the Conventional Understanding of Intellectual Property, 12 Journal of Law Economics and Policy 1 (2016), available at SSRN. In the last twenty years or so, numerous IP scholars have questioned – indeed, many have vigorously doubted – the need for robust intellectual property rights in order to generate significant […]