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Solution Manual for Law and Economics 6th Edition
Chapter 1
An Introduction to Law and Economics
The introductory material in this chapter is very similar to that in previous editions. Most law students will
find it either off-putting or suspicious that economists pay so much attention to eff...
solution manual for law and economics 6th editionsolution manual for law and economics 6th editionsolution manual for law and economics 6th editionsolution manual for law and economics 6th editionsolu
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Economics
Science
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Solution Manual for Law and Economics 6th
Edition Cooter
, Chapter 1
An Introduction to Law and Economics
The introductory material in this chapter is very similar to that in previous editions. Most law students will
find it either off-putting or suspicious that economists pay so much attention to efficiency and not much to
fairness or justice. So, it’s worth saying whatever one can early in the semester about this topic. The section
on the efficiency aspects of achieving an equitable distribution of resources makes what seems to us to be
an uncontroversial point—namely, that in seeking an equitable outcome, one ought to pay attention to
efficiency considerations—but it is a point about which there has been much sturm und drang in the
professional literature. There is more on this issue on our website.
Efficiency; Positive and Normative; Ex Ante; and Empirical
Over the years we have found that although law students are becoming increasingly familiar with economic
(and other social scientific) concepts, there is, nonetheless, some deep and persistent misunderstandings
about economics among noneconomists. One that seems nearly impervious to reasoned refutation is that
economics is a handmaiden to a very conservative political philosophy. It may be that there is a sensible
explanation for why this view is so widespread, but if so, neither of us has expressed it or heard it.
We have also found that there are some emphases that you might want to make in discussing the material
in this chapter. First, be sure to stress the difference between positive and normative analyses. Economic
analysis is insightful in both tasks. Even those who are skeptical of efficiency as a legal norm must recognize
the value of economic analysis in performing positive analysis.
Second, we have found that stressing the ex ante analysis of the effects of legal rules is crucial. This is
especially so with regard to law students. Legal education tends to focus on the resolution of disputes.
Indeed, in the United States the principal method of teaching any substantive area of the law is to read the
opinions of appellate justices. There’s no denying the value of this method of teaching the law. But it also
has costs. One is that law students tend to focus on how best to resolve disputes than on how best to avoid
disputes. Law and economics clearly puts a much stronger emphasis on the prospective effect of law—that
is, on a law’s likely effect on future human behavior—than does traditional doctrinal analysis.
Third, we believe that one of the most significant developments in law and economics since the publication
of the early editions of this book has been the rapid rise of empirical legal studies. Indeed, there is now a
first-rate scholarly journal entitled the Journal of Empirical Legal Studies. You might want to alert your
students to the fact that this edition of the book, unlike previous editions, now contains, as an integral part
of each subject, an extensive discussion of the empirical literature in this area. Preparing the students to
think about the empirical aspects of the subject—does the patent system really encourage innovative and
inventive activity, and how would we know?—is an important innovative element of law and economics
in the legal curriculum.
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