Chapter

Law and Economics

From Property: Volume 1 Christian Turner Assistant Professor of Law University of Georgia School of Law eLangdell® Press 2012 by Christian

Concepts

1. Economic Analysis

   "Economic analysis of law seeks to identify the effects of legal rules on the behavior of relevant actors and whether these effects are socially desirable. The approach employed is that of economic an

2. Externalities

   "When individuals use property, they may cause externalities, namely, harm or benefit to others. As a general matter, it is socially desirable for individuals to do more than is in their self-interest

3. Criticism

   "Many observers, and particularly noneconomists, view economic analysis of law with skepticism. It is sometimes claimed that individuals and firms do not respond to legal rules as rational maximizers

4. Reciprocal Harm

   "This paper is concerned with those actions of business firms which have harmful effects on others. The standard example is that of a factory the smoke from which has harmful effects on those occupyin