Foundations of Economic Analysis of Law

How do legal rules influence the choices of individuals and corporations? Foundations of Economic Analysis of Law provides a pioneering, rigorous examination into how law shapes behavior - from cautious driving and careful sidewalk maintenance to corporate practices such as product safety and contract compliance. Building on decades of research into the economic implications of legal institutions, this work lays the groundwork for understanding the incentives embedded in our legal system. Steven Shavell offers a thorough analysis of key legal domains including property, tort, contract, and criminal law, while also delving into the litigation process and the interplay between welfare economics and morality. His detailed inquiry illuminates how the threat of legal sanctions can alter actions, encouraging socially beneficial behavior across a broad spectrum of societal interactions. Designed for a diverse readership, this accessible yet comprehensive study requires no specialized training in either law or economics. With its clear analytical approach and expansive scope, Foundations of Economic Analysis of Law stands as an essential resource for anyone interested in the economic foundations that underpin our legal framework.