ECON 421

Law and Economics

Economics College of Family, Home, and Social Sciences

Course Description

Common law allocative mechanisms (contract, tort, and property law) as alternatives to collective intervention when markets fail; consideration of economic logic of law.

When Taught

Winter

Grade Rule

Grade Rule 8: A, B, C, D, E, I (Standard grade rule)

Min

3

Fixed

3

Fixed

3

Fixed

0

Title

Econ 421 students will be able to

Learning Outcome

Demonstrate a basic familiarity with the Common Law. Analyze the incentives created by Common Law tort rules. Analyze the incentives created by Common Law contract rules. Distinguish between "property rules" and "liability rules" with regard to property rights. Evaluate the relative efficiency of specific tort rules. Evaluate the relative efficiency of specific contract rules. Analyze the incentives to litigate or settle under different rules about which party pays the costs of the litigation. Analyze the incentives created by criminal sanctions. Synthesize the relevant economics and legal literature, including Federal and Supreme Court rulings, via a substantial survey paper on a specific tort, contract or property issue.