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1 Introduction: the economic approach to law&Paul Burrows and Cento G. Veljanovski1

1.1 The economic approach to law2

1.2 The benefits and costs of the economic approach13

1.3 Positive economic theories of law—prediction v description17

1.4 Toward an economic approach of the third kind22

1.5 Statutory control25

1.6 Concluding remarks25

Part one Contract35

2 Contract analysis: the transaction cost approach&Oliver E. Williamson39

2.1 Economic approaches to contracting39

2.2 A three-way classification of contracts42

2.3 Transaction cost economics45

2.4 Commercial contracting48

2.5 Other applications55

2.6 Concluding remarks56

3 Economic analysis of contractual relations&Ian R. Macneil61

3.1 Neoclassical microeconomic model, transactions costs and relational contract62

3.2 Discrete transactions and modern contractual relations64

3.3 Neoclassical microeconomic analysis of contractual relations75

3.4 Conclusion85

4 Judicial control of standard form contracts&M.J. Trebilcock and D.N. Dewees93

4.1 Introduction93

4.2 Standard form contracts and monopoly98

4.3 Standard form contracts and information asymmetries104

4.4 Comparative institutional competence116

Part two Tort121

5 The economic theory of tort liability—toward a corrective justice approach&Cento G. Veljanovski125

5.1 Introduction125

5.2 The legal and economic objectives of tort liability126

5.3 A corrective justice framework133

5.4 Some applications140

5.5 Conclusion144

6 Nuisance, legal rules and decentralized decisions: a different view of the cathedral crypt&Paul Burrows151

6.1 Introduction151

6.2 Justice and efficiency defined151

6.3 Tertiary costs, information and general deterrence152

6.4 Criteria for selecting legal rules154

6.5 Conclusion163

7 Negligent misrepresentation: an economic reformulation&William Bishop167

7.1 Introduction167

7.2 Conventional debate168

7.3 Information production and appropriability170

7.4 Two party negligent misrepresentation: transaction costs and quality signalling176

7.5 Three party negligent misrepresentation180

7.6 Public authorities183

7.7 Conclusion184

Part three The judicial process187

8 Economic aspects of legal procedure&Roger A. Bowles191

8.1 Introduction191

8.2 Analytical background192

8.3 Procedural issues197

8.4 Concluding remarks207

9 Quantitative rules and judicial decision making&Anthony I. Ogus210

9.1 Optimal precision of legal rules210

9.2 Trends in judicial rulemaking215

9.3 Conclusions222

10 The plea bargain in England and America: a comparative institutional view&Richard P. Adelstein226

10.1 Criminal price exaction and the development of procedure226

10.2 The negotiated plea in the price exaction framework229

10.3 External aspects of the price exaction procedure: moral cost considerations237

10.4 A direction for further research246

11 Judicial responses to exchange rate instability&Roger A. Bowles and Christopher J. Whelan253

11.1 Introduction253

11.2 The law before 1975254

11.3 The law since 1975256

11.4 Some difficulties259

11.5 Behaviour of defendants265

11.6 Conclusions267

Part four Public law273

12 Landlord-tenant relations law&Werner Z. Hirsch277

12.1 Introduction277

12.2 Habitability laws278

12.3 Rent control laws290

12.4 Just-cause eviction laws295

12.5 Age discrimination laws298

12.6 Conclusions300

13 The law and economics of the misconduct rule of unemployment insurance&Paul T. Fenn307

13.1 Introduction307

13.2 The misconduct rule: objectives and interpretation308

13.3 Dismissal for misconduct: optimizing behaviour where the law is given312

13.4 Disqualification for unemployment benefit as a result of misconduct: some evidence315

13.5 Conclusion318

14 Tax avoidance&J. Feldman and J. A. Kay320

14.1 Introduction320

14.2 Origins of tax avoidance321

14.3 Tax avoidance and the definition of income323

14.4 Tax avoidance in practice325

14.5 Is tax avoidance inevitable?331

Index334