scholarly journals General theory of legal design in law and economics framework of commercial contracting

2022 ◽  
pp. 205556362110616
Author(s):  
Katri Nousiainen
Keyword(s):  
Economic Theory ◽  
General Theory ◽  
Economic Analysis ◽  
Theoretical Foundation ◽  
Law And Economics ◽  
Real Life ◽  
Conventional Wisdom ◽  
Standard Theory ◽  
Microeconomic Theory ◽  
Economic Analysis Of Law

We need law and economics to do the scientific measurement necessary for legal design to be seen as on the stage of science. Law and economics—which is the application of economic theory, especially microeconomic theory, to the analysis and the practice of law--is a valid tool and approach to reflect on what should be empirically investigated in the practice of legal design. The neoclassical (mainstream) theoretical foundation of economic analysis of law is, however, at times far from reality as it often predicts uncooperative and even selfish behaviour. In real life people do cooperate, have empathy, emotions and even behave in an altruistic way. For those reasons, behavioural law and economics and conventional wisdom are needed to complement the teachings from standard theory in the field of commercial contracting.

Coase, Ronald H. (1910–)

2018 ◽  
Author(s):  
Brian H. Bix
Keyword(s):  
Economic Theory ◽  
Industrial Organization ◽  
Economic Analysis ◽  
Transaction Costs ◽  
Government Policy ◽  
Real World ◽  
Government Regulation ◽  
Law And Economics ◽  
Economic Analysis Of Law ◽  
Economic Thinking

Coase’s work reshaped the economic analysis of law and government policy, and began the law-and-economics movement. His writings, over the course of decades, have consistently emphasized the importance to clear economic thinking of observing actual practice. While economic theory had often been grounded on abstract models that assumed the absence of any costs for commercial transactions, Coase has shown how recognizing the pervasive presence of frequently substantial transaction costs in the real world requires rethinking established economic ideas about industrial organization and government regulation.

Economic Models of Law

2017 ◽  
Author(s):  
Thomas J. Miceli
Keyword(s):  
Economic Theory ◽  
Economic Analysis ◽  
Economic Activity ◽  
Law And Economics ◽  
Economic Models ◽  
Actual Process ◽  
Economic Analysis Of Law ◽  
Legal Rules ◽  
Incentive Effects ◽  
The Relationship

This article discusses the use of economic models for understanding law. It begins by describing the nature of economic models in general, and then turns to the specific application of economic models to law. It distinguishes between ‘economic analysis of law’, which concerns the use of economic theory for describing the incentive effects of legal rules (positive analysis) and for prescribing better rules (normative analysis); and ‘law and economics’, which concerns the relationship between law and markets as alternative institutions for organizing economic activity. The article concludes with some comments on the actual process of building economic models of law.

Behavioral Law and Economics

2018 ◽  
Author(s):  
Eyal Zamir ◽  
Doron Teichman
Keyword(s):  
Economic Analysis ◽  
Bounded Rationality ◽  
Law And Economics ◽  
Empirical Studies ◽  
Securities Regulation ◽  
Critical Examination ◽  
Entire Body ◽  
Economic Analysis Of Law ◽  
Behavioral Law And Economics ◽  
The Impact

In the past few decades, economic analysis of law has been challenged by a growing body of experimental and empirical studies that attest to prevalent and systematic deviations from the assumptions of economic rationality. While the findings on bounded rationality and heuristics and biases were initially perceived as antithetical to standard economic and legal-economic analysis, over time they have been largely integrated into mainstream economic analysis, including economic analysis of law. Moreover, the impact of behavioral insights has long since transcended purely economic analysis of law: in recent years, the behavioral movement has become one of the most influential developments in legal scholarship in general. Behavioral Law and Economics offers a state-of-the-art overview of the field. The book surveys the entire body of psychological research underpinning behavioral analysis of law, and critically evaluates the core methodological questions of this area of research. The book then discusses the fundamental normative questions stemming from the psychological findings on bounded rationality, and explores their implications for establishing the aims of legislation, and the means of attaining them. This is followed by a systematic and critical examination of the contributions of behavioral studies to all major fields of law—property, contracts, consumer protection, torts, corporate, securities regulation, antitrust, administrative, constitutional, international, criminal, and evidence law—as well as to the behavior of key players in the legal arena: litigants and judicial decision-makers.

Of Law and Economics and Economic Analysis of Law: The Role of the Lawyer

Global Jurist ◽  
2019 ◽  
Vol 19 (3) ◽  
Author(s):  
Guido Calabresi
Keyword(s):  
Economic Analysis ◽  
Law And Economics ◽  
Economic Analysis Of Law ◽  
Yale University ◽  
The Future

Abstract This is the first chapter of The Future of Law and Economics: Essays in Reform and Recollection by Guido Calabresi, first published by Yale University Press in 2016.

scholarly journals On the (Methodological) Future of Law and Economics. The Uneasy Burden of Value Judgments and Normativity

Global Jurist ◽  
2019 ◽  
Vol 19 (3) ◽  
Author(s):  
Paolo Silvestri
Keyword(s):  
Economic Analysis ◽  
Present Article ◽  
Law And Economics ◽  
Self Awareness ◽  
Economic Analysis Of Law ◽  
Value Judgments ◽  
Positive Approach ◽  
Problematic Relationship ◽  
Starting Point ◽  
The Future

Abstract Taking as its starting-point Guido Calabresi’s latest book – The Future of Law and Economics – the present article aims to explore the often neglected issue of value judgments and normativity in Law and Economics. I will show the importance of enquiring Calabresi’s methodological distinction between Law and Economics and Economic Analysis of Law and the related bilateralism thesis in order to understand the problematic relationship between methodological value judgments and ethical value judgments, the ‘distance’ between Calabresi and Posner and the problematic notion of reformism. Then I will try to introduce a different notion of normativity. I will also show the existence of an unresolved tension in Calabresi’s methodological discourse between a positive approach, which seems to be privileged in this book, and his insistence on the inevitability of value judgments in economic analysis. Finally, I clarify the reasons for the ‘ignorance’ of values by the economist by distinguishing between economists’ “lack of self-awareness”, economists’ idolatry and the economists’ lenses.

Comparative Law and Economic Analysis of Law

2019 ◽  
pp. 825-851 ◽  
Author(s):  
Florian Faust
Keyword(s):  
Economic Analysis ◽  
Subject Matter ◽  
Law And Economics ◽  
Comparative Law ◽  
Case Law ◽  
The Other ◽  
Economic Analysis Of Law ◽  
The Subject ◽  
The Relationship

This chapter discusses the relationship between comparative law and economic analysis of law. After providing an overview of the characteristics of the economic analysis of law, it explains how one of the two disciplines can operate as an ancillary discipline to the other; this has been termed ‘Comparative Law and Economics’. The next section describes how comparative law and economic analysis of law can be brought together by making one discipline the subject matter of the other. It suggests that the role of economic analysis of law may be greater in case law systems than in codified systems and that this role may vary according to the subject of legislation. The section concludes with considerations on the role comparative law plays and should play in different contexts. Finally, it is argued that comparative law and economics should not be considered a discipline on its own.

scholarly journals Compensation for Occupational Diseases and the Importance of Preventition: A Law and Economics Perspective

2007 ◽  
Vol 9 (2) ◽  
pp. 127-168 ◽  
Author(s):  
Michael G. Faure
Keyword(s):  
Social Security ◽  
Economic Analysis ◽  
Occupational Diseases ◽  
Law And Economics ◽  
Liability Insurance ◽  
Economic Analysis Of Law ◽  
Potential Influence ◽  
Work Related ◽  
Compensation Mechanisms ◽  
Preventive Effects

This paper deals with possible compensation mechanisms for damage caused by occupational diseases. Specific attention is paid to the potential influence of these compensation mechanisms on prevention of work related incidents. The economic analysis of law is used to pay attention to liability and liability insurance whereby both the preventive effects of liability and liability insurance are discussed as well as their capacity to compensate. Attention is equally paid to social security, compensation funds and first party as well as direct insurance schemes. Some empirical evidence concerning the effectiveness of various compensation mechanisms as far as the prevention of occupational diseases is concerned is also discussed.

scholarly journals Application of Economic Analysis of Law Theory as a Basis for Courts’ Judgements in Corruption Crime Cases: (Analyst’s Decision of 45/Pid.Sus/TPK/2011/PN.BDG)

2021 ◽  
Vol 3 (2) ◽  
pp. 84-97
Author(s):  
Peter Jeremiah Setiawan ◽  
Madeleine Celandine Guinevere ◽  
Fauzy Iskandar Alamsyah ◽  
Mohammad Irvan
Keyword(s):  
Economic Theory ◽  
Economic Analysis ◽  
Opportunity Cost ◽  
Cost Benefit ◽  
Legal Analysis ◽  
Economic Analysis Of Law ◽  
Legal Research ◽  
Conceptual Approach ◽  
Wealth Maximization ◽  
Theory Of Law

Mastery theory of law is one of the criteria for a good court. One of the law theories currently being developed is economic analysis of law theory. One of the decisions that the judge considered was using economic analysis of law theory in making a decision is a decision of 45/Pid.Sus/TPK/2011/PN.BDG. Therefore, this article will analyze further into the decision of 45/Pid.Sus/TPK/2011/PN.BDG. This research is legal research that uses statute approach, conceptual approach, and case approach. Based on the research, it showed that the features of economic analysis of law theory are: 1) Focused on the philosophy of justice utilitarianism which is the fundamental concept based on felicific calculus, 2) Using the basis of consideration: a) Economic theory as a foundation for legal analysis, b) Using analysis of cost-benefit to create a law and/or c) Consideration of opportunity cost which law will be formed, and 3) Output which is achieved is wealth maximization. Related to the Decision Number Register 45/Pid.Sus/TPK/2011/PN.BDG. in fact, arguable that judges make the decision based on economic analysis of law theory because related to ratio decedendi has fulfilled 3 (three) characteristic economic analysis of law theory.

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