Law and Economics

  1. Foundational Economic Concepts
    1. Efficiency as Central Concept
      1. Pareto Efficiency
        1. Definition and Criteria
          1. Pareto Improvements
            1. Pareto Optimality
            2. Kaldor-Hicks Efficiency
              1. Compensation Principle
                1. Potential Pareto Improvement
                  1. Applications in Law
                  2. Wealth Maximization
                    1. Measuring Social Welfare
                      1. Critiques of Wealth Maximization
                    2. Marginal Analysis
                      1. Marginal Cost
                        1. Marginal Benefit
                          1. Decision-Making at the Margin
                            1. Law's Role in Shaping Marginal Incentives
                              1. The Equimarginal Principle
                                1. Resource Allocation Across Uses
                              2. Externalities
                                1. Negative Externalities
                                  1. Definition and Examples
                                  2. Positive Externalities
                                    1. Definition and Examples
                                      1. Encouraging Positive Spillovers
                                      2. Internalizing Externalities
                                        1. Pigouvian Taxes
                                          1. Subsidies
                                        2. Transaction Costs
                                          1. Definition of Transaction Costs
                                            1. Types of Transaction Costs
                                              1. Search Costs
                                                1. Information Costs
                                                  1. Bargaining Costs
                                                    1. Decision Costs
                                                      1. Enforcement Costs
                                                        1. Monitoring Costs
                                                        2. Law's Role in Reducing Transaction Costs
                                                          1. Standardization
                                                            1. Facilitating Exchange
                                                          2. Risk and Uncertainty
                                                            1. Risk Preferences
                                                              1. Risk Aversion
                                                                1. Risk Neutrality
                                                                  1. Risk Seeking
                                                                  2. Utility Theory and Risk
                                                                    1. Insurance and Liability
                                                                      1. Risk Pooling
                                                                        1. Risk Transfer
                                                                          1. Moral Hazard
                                                                            1. Adverse Selection
                                                                          2. Game Theory Basics
                                                                            1. The Prisoner's Dilemma
                                                                              1. Structure and Payoff Matrix
                                                                              2. Strategic Behavior
                                                                                1. Nash Equilibrium
                                                                                  1. Definition and Examples
                                                                                  2. Sequential Games
                                                                                    1. Repeated Games
                                                                                      1. Subgame Perfection
                                                                                        1. Reputation Effects
                                                                                          1. Enforcement Mechanisms

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                                                                                      1. Introduction to Law and Economics

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                                                                                      3. The Coase Theorem