Course: Law and Economics
Faculty: Dr. Ranita Nagar
Gujarat National Law University
Gandhinagar, Gujarat (India)
An introduction to Law and Economics
Session: 2016 (January May 2016)
Economics of the Family
Law: Marriage and Divorce
Family Law Now
In recent decades family law around the world has
been transformed. In a sweeping wave of reform,
all Western nations and a great number of other
countries have enacted new family laws that
The market system reaches its desirable outcomes
only under certain conditions.
Prerequisites for efficient functioning of markets:
No transaction costs
Efficiency and Equity
A rationing system to deal with the
Because economic resources are relatively scarce
(resources are limited, wants are unlimited) a
society cant have everything they want. There must
be a system that rations both res
Liability System as an
We investigate how the two terms of Retribution and Deterrence a
little bit more closely to see how these two concepts can connect the
realm of economic exchange to the realm of liability.
UNCERTAINTY: RISK AND
Law and Risk
Contracts manage risks of nonperformance.
Regulations manage perceived risks to the
health and safety of citizens.
Sentencing principles aim to manage the
risks of violence.
Law is ofte
Price Change: Income and
THE IMPACT OF A PRICE
Economists often separate the
impact of a price change into two
the substitution effect; and
the income effect.
THE IMPACT OF A PRICE
The substitution effect i
The concept of economic rationality has a
specific but simple meaning in economics.
It means that people prefer more to less
and maximise net benefits, whether utility,
wealth, or profits, as perceived by them.
This theory of ratio
Besides analysing consumers demand,
indifference curves have several other
applications such as to explain the concept of
consumers surplus, substitutability and
complementarity of goods, supply curve of la
The theory of games is a study of rational
decision-making when each player knows that
the other players will react to its moves, and
takes account of their expected reactions
when making moves.
For example, firm A asks, 'Shall I raise or
lower my price