1 INTRODUCTION 1
Law and Economics 1
Nature and Origin of Laws 2
Nature and History of Economics 3
The Interface between Law and Economics 4
Where Law and Economics Might Not Meet 11
Entitlements and Externalities and the Role of the Law 12
2 PROPERTY LAW’S BASIC LEGAL PREMISES 20
Introduction 20
Defining Rights and Entitlements to Property 20
Permanent Transfer of Rights and Entitlements 27
Temporary Transfer of Rights and Entitlements 34
Land Use Planning and Development 46
Conclusion 51
3 ECONOMIC ANALYSIS OF LANDLORD-TENANT LAWS 52
Introduction 52
Habitability Laws 53
Rent Control Laws 64
Laws Complementing Rent Control 73
Just-Cause Eviction Laws 74
Housing Subsidy Laws 77
Conclusion 79
4 ECONOMIC ANALYSIS OF ZONING LAWS 80
Introduction 80
Residential-Commercial-Industrial Zoning Ordinances 82
Exclusionary Zoning 89
Inclusionary Zoning 94
Zoning as a Taking? 98
Expanding Aims of Zoning 102
Conclusion 103
5 CONTRACT LAW 105
Introduction 105
The Basic Legal Premises of Contract Law 105
Economic Considerations of Contract Law 120
Conclusion 136
6 TORT LAW’S BASIC LEGAL PREMISES 137
Introduction 137
What Is a Tort? 137
Negligence 139
Duty 144
Proximate Cause 146
Defenses 149
Liability Rules—Introductory Classification 151
The Rule of Contributory Negligence 152
The Rule of Comparative Negligence 155
The Rule of Strict Liability 158
Probabilistic Causation 165
Damages 167
Conclusion 170
7 ECONOMIC ANALYSIS OF TORT LAW 172
Introduction 172
Economic Analysis of Medical Malpractice 175
Effects of Liability Standards 190
Some Economic Considerations of Product Liability 195
Economic Analysis of Accident Law 199
Sovereign Immunity 206
Rules for Assigning Liability for Litigation Costs 212
Tort Reforms’ Economic Effects 215
Conclusion 216
8 CRIMINAL LAW 217
Introduction 217
Basic Legal Premises of Criminal Law 219
Economic Analysis of Criminal Law 227
Crime Deterrence by Raising Costs to Criminals 233
Crime Deterrence by Raising Legal Income 246
Conclusion 249
9 ENVIRONMENTAL LAW 251
Introduction 251
Legal Aspects of Environmental Protection 252
Court-Made Environmental Law 254
Statutory Environmental Law 260
Economic Analysis 264
Conclusion 274
10 ANTIMONOPOLY LAW 275
Introduction 275
The Economic Incentive to Monopolize Markets 277
A Brief Outline of Antimonopoly Acts 279
Ways to Monopolize Markets: Many Roads Lead to Rome 281
Horizontal Mergers and Conglomerates 281
Cartels 285
Price Discrimination 288
Foreclosing Entry 290
Vertical Integration 290
Government-Induced Price Fixing and Foreclosure 300
Remedies 305
Some Further Economic Considerations 306
Anti-trust Policy toward High-Tech Industries 308
Conclusion 310
11 DISCRIMINATION LAW 312
Introduction 312
Employment Discrimination 312
Housing Discrimination 334
Age Discrimination 343
Conclusion 347
INDEX 349