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Handbook of Law and Economics: 1

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 | #1075324 in eBooks |  2007-11-07 |  2007-11-07 | File type: PDF

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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 promi...

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