ECON 229 Law and Economics (Not offered 2008-2009) (Q)
This course applies the tools of microeconomic analysis to both private (i.e., civil) and criminal law. This analysis has both positive and normative aspects. The positive aspects deal with how individuals respond to the incentives created by the legal system. Examples include: how intellectual property law encourages the creation of knowledge while simultaneously restricting the dissemination of intellectual property; how tort law motivates doctors to avoid malpractice suits; and how criminal law deters criminal activity. The normative aspects of the analysis ask whether legal rules enhance economic efficiency (or, more broadly, social welfare). Examples include: what legal rules are most appropriate for mitigating pollution, ensuring safe driving, and guaranteeing workplace safety? The course will also cover the economics of legal systems; for example, what are the incentives for plaintiffs to initiate lawsuits and what role do lawyers play in determining outcomes. The course will also consider potential reforms of the legal system.
Format: lecture/discussion. Evaluation will be based on class participation, problem sets, short papers based on actual court cases and possible legal reforms, a midterm exam, and a final exam.
Prerequisite: Economics 110. Enrollment limit: 35 (expected: 25). Preference given to majors and sophomores if overenrolled.
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