Law and Economics in a Nutshell

by Harrison, Jeffrey L.

• ISBN13: 9780314241764
• ISBN10: 0314241760
• Format: Paperback
• Copyright: 2000-08-01
• Publisher: West Group

Table of Contents

Preface	v
Table of Cases	xvii
Introduction	1	(6)
An Introduction to Price Theory	7	(21)
Demand, Supply and Market Equilibrium	7	(8)
Demand	7	(4)
Supply	11	(3)
Market Equilibrium	14	(1)
Elasticity	15	(5)
Generally	15	(3)
Incidence Analysis	18	(2)
Perfect and Imperfect Markets	20	(6)
Marginal Analysis Generally	26	(2)
Terms and Controversies in Law and Economics	28	(31)
Efficiency	28	(9)
Allocative Efficiency	29	(2)
Pareto Optimality and Superiority	31	(4)
Kaldor---Hicks Efficiency	35	(2)
Rational Maximizer of Self---Interest	37	(2)
Choices and Preferences	39	(4)
The Wealth Effect	40	(1)
Framing Problems	41	(1)
False Consciousness	42	(1)
Externalities	43	(7)
Negative Externalities and Property Rights	43	(4)
Positive Externalities, Free---Riding and Public Goods	47	(3)
Complications	50	(9)
Lexical Ordering	51	(2)
Exogenous and Endogenous Effects	53	(1)
The Theory of Second Best	54	(2)
Variations in a Sense of Justice and Entitlement	56	(3)
The Case Theorem and Related Property Issues	59	(26)
The Coase Theorem	59	(8)
Allocative Implications	59	(4)
Assignment of Rights and Distributive Effects	63	(2)
Transaction Costs	65	(2)
Bargaining Problems	67	(3)
The Wealth Effect	70	(3)
Reactions to Transaction Costs	73	(6)
Duplicating Friction---Free Exchanges	73	(5)
Asymmetrical Transaction Costs	78	(1)
Protecting Entitlements	79	(6)
Contract Law Applications	85	(63)
Contract Law: Theory and Economic Goals	85	(11)
Exchange, the Contract Curve and Pareto Efficiency	85	(7)
Why Does Contract Law Exist?	92	(2)
Contract Formation and Private Risk Allocation	94	(1)
The Economic Goals of Contract Law	94	(2)
Contract Formation	96	(16)
Capacity	97	(3)
Duress	100	(2)
Offer and Acceptance and Other Formalities	102	(2)
The Consideration Requirement	104	(8)
Contract Law and Distributive Goals	112	(16)
Exculpatory Provisions	115	(6)
Unconscionability	121	(7)
Contract Remedies	128	(13)
The Efficient Breach	129	(4)
Specific Performance	133	(3)
Liquidated Damages	136	(2)
The Lost Volume Seller	138	(3)
Breach and Excuses for Non---Performance	141	(7)
Breach	141	(3)
Excuses for Non---Performance	144	(4)
Economics of Tort Law	148	(41)
The Costs of Accidents and the Economics of Tort Law	149	(2)
Liability, the Assignment of Rights and Externalities	151	(4)
The Negligence Standard	155	(2)
The Hand Formula	155	(1)
Distributive Consequences	156	(1)
Refining the Negligence Model: Contributory Negligence	157	(3)
The Conventional Doctrine	157	(1)
Reconciling Contributory Negligence and Efficiency	158	(2)
Refining the Negligence Standard: Comparative Negligence	160	(5)
Apportioned Comparative Negligence	161	(3)
Nonapportioned Comparative Negligence	164	(1)
Assumption of the Risk	165	(1)
Strict Liability	166	(16)
Efficiency and Strict Liability	167	(4)
Risk---Aversion and Loss Spreading	171	(6)
Duty to Rescue	177	(2)
Defenses to Strict Liability	179	(3)
Damages	182	(7)
The Collateral Source Rule	182	(1)
Future Losses	183	(4)
Punitive Damages	187	(2)
Economic Analysis of Criminal Law	189	(31)
Why Have Criminal Law?	190	(18)
Creating an Incentive for Market Exchanges	191	(6)
Criminal Law and Externalities	197	(8)
Criminal Law and Behavior	205	(3)
Administering Criminal Sanctions	208	(12)
The Optimal Level of Criminal Conduct	209	(6)
Deterrence Options	215	(5)
The Economics of Antitrust	220	(34)
The Competitive Extremes of Perfect Competition and Monopoly	221	(25)
Demand and Supply	221	(4)
Market Equilibrium, Producer and Consumer Surplus	225	(3)
The Individual Firm Under Perfect Competition: The Marginal Cost = Marginal Revenue Rule	228	(4)
Cost Curves	232	(3)
Equilibrium and Perfect Competition	235	(2)
Monopoly	237	(3)
Perfect Competition and Monopoly Compared	240	(3)
Some Limits on the Comparison	243	(3)
Market Power and Market Definition	246	(8)
Market Power	246	(1)
The Lerner Index	247	(1)
The Determinants of Market Power	248	(1)
Market Definition and Cross---Elasticity	249	(2)
Geographic Markets	251	(1)
Supply Elasticity	252	(2)
The Economics of Government Regulation	254	(38)
The Natural Monopoly Rationale	255	(16)
The Theory of Natural Monopoly	255	(4)
Agency Regulation	259	(10)
Contestable Markets	269	(2)
Excessive Competition	271	(3)
The Allocation of Inherently Scarce Resources	274	(3)
Reactions to Transaction Costs and Externalities	277	(15)
Rationalizing an Industry	278	(2)
Increasing the Availability of Information	280	(4)
Reactions to Externalities	284	(8)
Public Choice	292	(33)
Why Have a Government?	293	(5)
Approaches to Government	298	(5)
Utilitarianism	298	(3)
Rawls' Theory of Justice	301	(2)
Why Vote at All?	303	(2)
Problems of Ascertaining Preferences Through Voting	305	(11)
Unanimity and Majority Voting	305	(4)
Arrow's Therorem and Possible Solutions	309	(7)
The Economic Theory of Legislation	316	(9)
What Do Legislators Want?	316	(3)
Interest Groups	319	(2)
The Market for Legislation	321	(4)
Index	325