Methodology of Law and Economics

Bart van Klink and Sanne Taekema (Eds.), Law and Method. Interdisciplinary research into Law (Series Politika, nr 4), Tübingen: Mohr Siebeck 2011, pp. 85-107

16 Pages Posted: 3 May 2013

See all articles by Alessio M. Pacces

Alessio M. Pacces

Amsterdam Law School / Amsterdam Business School (ACLE); European Corporate Governance Institute (ECGI); European Banking Institute

Louis T. Visscher

Erasmus University Rotterdam (EUR) - Erasmus School of Law; Erasmus University Rotterdam (EUR) - Rotterdam Institute of Law and Economics

Date Written: 2011

Abstract

In this chapter, written for the book 'Law and Method. Interdisciplinary Research info Law', we describe the methodology of Law and Economics. We start by discussing the mainstream economic approach to law, including the topics of rationality, the use of (sometimes unrealistic) assumptions, the distinction between positive and normative Law and Economics,and the concept of efficiency. Subsequently we describe the viewpoint that law can be seen as a way to correct different types of market failures (market power, externalities, collective goods and information asymmetry). Then we analyze the case for regulatory intervention and its limits, spending attention to the Coase theorem and the importance of transaction costs. Next we discuss insights from Behavioural Law and Economics and in our conclusion state why Law and Economics is useful to lawyers.

Keywords: Law and Economics, Methodology, Rational Choice Theory, Behavioural Economics, Efficiency, Market Failure

JEL Classification: B00, B40

Suggested Citation

Pacces, Alessio Maria and Visscher, Louis T. and Visscher, Louis T., Methodology of Law and Economics (2011). Bart van Klink and Sanne Taekema (Eds.), Law and Method. Interdisciplinary research into Law (Series Politika, nr 4), Tübingen: Mohr Siebeck 2011, pp. 85-107, Available at SSRN: https://ssrn.com/abstract=2259058

Alessio Maria Pacces (Contact Author)

Amsterdam Law School / Amsterdam Business School (ACLE) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

HOME PAGE: http://www.uva.nl/profiel/p/a/a.m.pacces/a.m.pacces.html

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://https://ecgi.global/users/alessio-pacces

European Banking Institute ( email )

Frankfurt
Germany

Louis T. Visscher

Erasmus University Rotterdam (EUR) - Erasmus School of Law ( email )

3000 DR Rotterdam
Netherlands
+31 (10) 408 1833 (Phone)
+31 (10) 408 9191 (Fax)

HOME PAGE: http://frg.sin-online.nl/staff/index.html?lia=227

Erasmus University Rotterdam (EUR) - Rotterdam Institute of Law and Economics ( email )

Burgemeester Oudlaan 50
PO box 1738
Rotterdam, 3000 DR
Netherlands

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