It's Your Education, Make an Informed Choice.

People who view the law from an economic perspective are often referred to as “rational calculators.” Pareto looks at the gains of a particular party, while the Kaldor-Hicks criteria only views a transaction as economically efficient if one party gains so much as to be able to compensate the one who does not benefit as much. Posner adds to the concept of scarcity and claims it’s impossible to have absolute economic efficiency, but he does believe common law approves efficient transactions.

Posner also believes common law is efficient because it has constantly changed over time to serve society’s best interests. He believes the goal of the law is wealth maximization.

Course Objectives

• By the end of this course, students will be able to conduct an economic analysis of the law. They will have a better understanding of Pareto’s concepts of optimality and superiority and apply the concept of economic efficiencies to contract law and to the tort of negligence.
• Participants will look at how Posner believes that common law is efficient and see how applying the scientific method to creation and use of the law produces poor results.
• The class will also examine the relationship of wealth maximization and product efficiency and contrast of the views of conservatives and liberals about the role government should play in the marketplace.
• By the end of this course, students will be able to identify and define the following key terms: common law, economic efficiency, Pareto-superior, Pareto-optimal, Kaldor-Hicks criteria, scarcity, scientific method, wealth maximization, productive efficiency, welfare state, conservatives and liberals.