By Jeffrey Harrison
This consultant offers specialist insurance of the vintage concerns, together with simple rate conception; definitions of potency; the Coase Theorem; and the economics of agreement legislation, tort legislations, felony legislation, law, antitrust, and highbrow estate. The textual content additionally discusses much less traditional themes comparable to public selection, what it ability to be a rational maximizer of self-interest, the assumptions underlying fiscal research as utilized to legislation, boundaries at the program of financial idea to legislation, the idea of moment most sensible, the prisoner’s difficulty, the economics of marriage, the economics of inheritance, evolutionary theories of legislation, the economics of payment, and the results of modern learn into happiness.
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Extra resources for Harrison's Law and Economics in a Nutshell, 5th
In other words how do we know if choices made really do maximize utility or happiness. Researchers who focus on happiness are largely interested in what actually happens. Ideally, this is what economics should be about but it is not an easy task. The problem is pinning down what it means to be happy and what sorts of things are consistent with happiness. Perhaps most important, is happiness an absolute or relative concept? This book proceeds from the assumption that a properly taught course in law and economics, whether in an economics department or in a law school, will include more than a single-minded examination of the conventional application of economic analysis to law.
As one might expect, though, this may very well be impossible. If one decides that all the markets cannot be competitive, the question then becomes whether it makes sense from the standpoint of efficiency to make as many markets competitive as possible. The answer is that efficiency may not be furthered by a policy of making as many markets as possible competitive when you know that ultimately all markets will not be competitive. In fact, there may be a “second best” solution that actually allocates resources more efficiently by allowing for comparable levels of imperfection.
When economists speak of demand, they mean a range of prices and the amount of a good or service that individuals are willing and able to purchase in a given market at a given time at those prices. It is critical to note that demand does not account for those who either cannot afford the good or service or are unwilling to pay. This may be particularly important later when the discussion turns to consideration of efficiency and what that term means. Also, you cannot speak about demand without expressly or implicitly limiting the market both time-wise and by location.