Economic Analysis of Law

Introduction

How can effective contracts be designed? When should you sue a supplier? What is the economic rationale behind anti-money laundering rules? How can businesses operate in countries with weak legal systems? How can economic theory help us explain and understand existing law?

This course provides an introduction to the economic analysis of law. We will analyze how individual firms can best adapt to legal rules and how the legal system influences markets. We will also use economic theory to explain why our legal rules exist. Economic analysis is a powerful tool for interpreting and understanding existing law and can be used to formulate compelling legal arguments.

The course will focus on economic crimes, contract law, and civil procedure. The teaching will be based on cases that may vary from year to year.

Course content

• Contracts. How can effective contracts be designed? How can businesses operate in countries where contracts are difficult to enforce? What is the economic explanation behind contract law?

• Economic crime. How does the legal system affect incentives to commit criminal acts such as tax evasion, money laundering, fraud, and corruption? What is an effective AML strategy? How can businesses avoid being involved in economic crimes?

• Civil procedure. Is litigation too expensive in Norway? When should settlements be reached? What are the consequences of procedural rules for actors' incentives to comply with the law? How does the market for legal services function? Why are procedural rules designed the way they are?