Law and Economics
The Oxford Handbook on The New Private Law (2020)
24 Pages Posted: 26 Feb 2021
Date Written: December 18, 2020
Law and economics has had a significant impact on foundational private law subjects — property, contracts, and torts — as well as advanced private law areas. This chapter analyzes how law and economics influences private law and how New Private Law (NPL) is influencing law and economics.
After a brief introduction in Section I, Section II provides background on law and economics. Section III focuses on property, contracts, and torts. For each area, this section distinguishes three generations of scholarship in law and economics, discusses the major ideas that economic analysis has contributed to private law, and surveys contributions of the NPL. Section IV briefly discusses the impact of law and economics on advanced private law areas such as business associations, trusts and estates, and intellectual property. Section V concludes by focusing on future directions in NPL and economics, including recent scholarship that takes seriously both the law and the effects of law.
Keywords: law and economics, property, contracts, torts, cost-benefit analysis, transaction costs, information costs, incomplete contracts, deterrence, risk, moral hazard, litigation costs, agency costs, business associations, trusts and estates, intellectual property
JEL Classification: KOO, K10, K11, K12, K13
Suggested Citation: Suggested Citation