ECON 439 Law and Economics 3 hours credit – Introduces the use of economic analysis to evaluate the impact of alternative legal rules. Particular emphasis is given to the public policy implications of using economic efficiency as the criterion by which one chooses between potential rules in the traditional common-law areas of property law, contract law, and tort law.
LEARNING OUTCOMES
Students will be able to
- Identify the Coase theorem.
- Use the Coase theorem to evaluate the effect of law on economic efficiency.
- Explain the economic model of precaution.
- Use the economic model of precaution to evaluate the efficiency effects of alternative liability and negligence rules.
- Identify the elements of a valid contract.
- Explain the economic model of efficient breach.
- Apply the economic model of efficient breach to evaluate the efficiency effects of alternative damages and performance rules.
- Identify the elements of property rights necessary for efficient exchange.
- Evaluate the efficiency effects of alternative remedies for breach of property rights.
- Identify alternative compensation rules under eminent domain.
- Evaluate the efficiency effects of alternative compensation rules under eminent domain.