Introduction to Law and Economics

1 Topic:  Introduction. Methodology and Some Fundamental Concepts

    1. Readings:

- Hans-Bernd Schäfer – Claus Ott, The Economic Analysis of Civil Law, 2004, pages 3-37 

- Alessio M. Pacces - Lois T. Visscher, Methodology of Law and Economics, 2011, pages 85-107


2 Topic: The Coase Theorem

    1. Readings:

- Robert Cooter – Thomas Ulen, Law & Economics, Chapter 4, pages 70-94


3 Topic: The Coase Theorem continued

    1. Discussion papers*:

- Scott Gaille, Allocation of International Petroleum Licenses to National Oil Companies: Insights From The Coase Theorem, Energy Law Journal, vol. 31, 2010, pages 111-124

- Marco Becht et Al, Loyalty Shares with Tenure Voting – Does the Default Rule Matter? Evidence from the Loi Florange Experiment, ECGI Working Paper, September 2019

- Daniel R. Fischel – Dennis W. Carlton, The Regulation of Insider Trading, Stanford Law Review, vol. 35, 1982, pages 857-895


4 Topic: Property Rules, Liability Rules and Efficient Remedies; Market Failures

    1. Readings:

- Robert Cooter – Thomas Ulen, Law & Economics, Chapter 4, pages 94-108


5 Topic: Property Rules, Liability Rules and Efficient Remedies; Market Failures continued

    1. Discussion papers*:

- Dotan Oliar, The Copyright-Innovation Tradeoff: Property Rules, Liability Rules, and Intentional Infliction of Harm, Stanford Law Review, vol. 64, 2012, pages 951-1020

- Michael Rushton, Law and Economics of Artists’ Inalienable Rights, Journal of Cultural Economics, vol. 25, 2001, pages 243-257


6 Topic: Regulation of Markets and Self-Regulation

    1. Discussion papers*:

- Lisa Bernstein, Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry, Journal of Legal Studies, vol. 21, 1992, pages 115-157

- Lisa Bernstein, Private Commercial Law in the Cotton Industry: Creating Cooperation Through Rules, Norms, and Institutions, Michigan Law Review, vol. 99, 2001, pages 1724-1790

* Students will be asked to present in class the main arguments raised in the discussion papers and make own arguments supporting or challenging the former from a law and economics perspective.

Final Assignment subject to pass-or-fail grading scale

Each student shall draft a short reaction paper to a law and economics article which will be provided at the end of the course. The reaction paper shall be no longer than three, double-spaced pages using a 12 font size. In her reaction paper the student shall raise at least three arguments of her own all in favor or against (or partly in favor and partly against) the arguments contained in the law and economics article. The student shall argue whether her observations are based on law and economics insights and, in such a case, which notions, concepts and/or methods she will have resorted to for purposes of her argumentation. Should the student use concepts and methods different from, and alternative to, those advocated in law and economics, she shall motivate to what extent such concepts and methods, and the ensuing analytical results, depart from those advocated in law and economics.   

The deadline for submission of the reaction papers by email to is January 24, 2021.