Law and Economics
Present paper the fourth chapter in the book Economic Analysis of Law, discusses the concept of game theory and its application to the law on negligence, accidents. Kindly view the other chapters, also uploaded on SSRN for a detailed disccussion on economic analysis of law.
The present paper, the second chapter in the book on Economic Analysis of Law discusses the economic approach to law and economics and its rationale followed by a discussion on basic principles of Micro Economics including the concept of Utility; Cost & Revenues; Theories and Kinds of Profit; PPF; Concept of Efficiency; Demand, Supply & Market Equilibrium; Elasticity; Concept of Surplus; Dead Weight Loss; Externality & Consumer Theory. Kindly view the other chapters, also uploaded on SSRN for a detailed discussion on economic analysis of law.
The present paper is an introductory paper to the emerging field of law & economics. The paper seeks to define the scope of economic analysis of law; what are the goals of bringing the two disciplines of law and economics together; what is the criterion for measuring efficiency; beginning from the neo-classical approach to the present day discussion on behavioural approach, how did law and economics emerge as a discipline and what is the future of economic analysis of law. This paper is first part of the book on Economic Analysis of Law. Subsequent chapters discuss issues such as game theory, the microeconomic and some basic mathematical principles employed in law and economics.
Present chapter is a comparative case analysis of the Microsoft decision by the EU & US. Microsoft was tried under Article 102 of the TFEU in EU and Section 2 of the Sherman Act in the US for abusing its dominant position. The chapter traces the growth of the software giant and makes a transatlantic comparative analysis of the issues relating to abuse of its dominance, interoperability and tying and the treatment of the same by courts on both sides of the Atlantic. Kindly view the other chapters, also uploaded on SSRN for a detailed disccussion on economic analysis of law.
The Chicago school argues that irrationality is the anti-thesis of rational markets. Simply put, a free market is a rational market. The behavioral economics on the other hand questions and successfully challenges this underlying assumption of rationality. It argues that man is not as rational as believed to be, on the contrary, s/he displays bounded rationality, bounded will power and bounded selfishness in real world scenarios. It tries to seek the rationale for such a rationality being bounded. Does this mean that humans are not innately as selfish as predicted? What are the constraints on this selfishness and rationality? But an equally important question is does the Behavioral approach provide a vivid representation of how the matrix of human response emerges in the backdrop of bounded rationality and thereby provide superior understanding of the firm and consumer behaviour. The present chapter deliberates on some of these case with examples of corporate context such as mergers and acquisitions, and availability cascade and formation of public opinion.