by Prof. Oren Bar-Gill

This course provides a foundational understanding of how economic analysis can illuminate the operation of legal rules and institutions. We will focus primarily on private law areas, such as the law of accidents (torts), property, and contracts. For example, we will analyze the economic rationale for property rights, examining how they address externalities and facilitate efficient resource allocation. We will also delve into contract law, investigating how it promotes mutually beneficial exchange by providing a framework for agreement and enforcement. Our exploration of tort law will consider how different liability rules affect incentives for precaution and influence the allocation of accident costs. In addition, we will study the economic analysis of criminal law and, more generally, the public enforcement of law. Foundational topics in litigation and settlement will also be covered.

In addition to considering canonical economic analyses of these topics based on the standard rationality assumption of neoclassical economics, we will also consider how insights from behavioral economics—incorporating more realistic psychological assumptions into our economic analyses—can enrich our understanding of legal institutions.