Handbook of Law and Economics

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  • ISBN: 9780444512352
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Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions — for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices.

The incentives created by the legal system are thus a natural subject of study by economists.

Moreover, given the importance of law to the welfare of societies, the economic analysis of law merits prominent treatment as a subdiscipline of economics.

Our hope is that this two volume Handbook will foster the study of the legal system by economists.

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