First term (October - December) in Bologna, Hamburg or Rotterdam
First term courses introduce the students to the methodology and the basic concepts of the economic analysis of law.
The tools of microeconomics are used to explore the effects of legal norms. The legal approach focusing on notions of justice is compared to an economic approach, using concepts of efficiency as well as other normative concepts.
In some areas of law, such as competition law and regulation, economic analysis is already well established. In other fields of law, the relevance of economic concepts is growing in importance.
From the new fields of Law and Economics, tort law and insurance will be highlighted. Tort law will be analysed as a set of rules providing incentives to commit or avoid torts. A comparative method is used to illustrate both the efficiency and the equity of alternative legal rules.
Bologna (University of Bologna - Faculty of Economics)
- Crash Course in Mathematics
- Basic Concepts of Law and Economics I: Microeconomics
- Basic Concepts of Law and Economics II: Comparative Law and Economics
- Economic Analysis of Tort Law
- Competition Law and Economics
- Public Law and Economics
Hamburg (University of Hamburg - Fachbereich Rechtswissenschaft)
- Introductory Course in Formal Methods
- Introductory Course in Law
- Basic Concepts of Law and Economics I: Microeconomics
- Tutorial - Microeconomics
- Basic Concepts of Law and Economics II: Comparative Law
- Economic Analysis of Tort Law
- Competition Law and Economics
- Public Law and Economics I: Public Regulation and Public Choice
Rotterdam (Erasmus University Rotterdam - Law Faculty)
- Mathematics (crash course)
- Basic Law (crash course)
- Basic Concepts of Law and Economics I: Microeconomics
- Basic Concepts of Law and Economics II: Comparative Law
- Economic Analysis of Torts and Insurance
- Economic Analysis of Competition Law
- Public Law and Economics
Detailed Course Descriptions
All information is subject to change.Bologna (University of Bologna - Faculty of Economics)
Crash Course in MathematicsLecturer: Dott. Pietro Pasotti
Topics
1) Functions of one real variable
- definition
- notation issues
- graphs
1.1) Derivatives
- geometric meaning
- computing derivatives
1.2) Maximization (minimization)
- first and second order conditions
2) Functions of many real variables
- definition
- graphs
2.1) Partial derivatives
- geometric meaning
- computing partial derivatives
2.2) Unconstrained maximization
- first order conditions
- second order conditions for 2-variables functions
2.3) Constrained maximization with equality constraints
- Lagrangian function
- first order conditions
- simplified second order conditions
- the meaning of the Lagrange multiplier
Literature
1) Carl P. Simon e Lawrence Blume (1994) "Mathematics for Economists", W.W. Norton & Company - chapters: 2, 3, 4, 13, 14 (but 14.6, 14.7), 17, 18, 19 (only 19.1, 19.3, 19.5)
2) M. Timbrell (1985), "Mathematics for Economists", Blackwell - chapters: 1,8,9 (14,15).
Hours: 4 x 2.5 hours
Basic Concepts of Law and Economics I: Microeconomics
Lecturer: Prof. Luigi Alberto Franzoni
Contents and purpose of the course
This course provides an introduction to the basic economic
concepts and methodology, to be applied to the analysis of
the law. The course will emphasize the intuition at the basis
of standard economics arguments. Still, some knowledge in
basic calculus is assumed (see the introductory course in
Quantitative Methods).
Topics
1. The Market Forces of Supply and Demand.
2. Elasticity and Its Application.
3. Supply, Demand, and Government Policies.
4. Consumers, Producers, and the Efficiency of Markets.
5. The Costs of Production.
6. Firms in Competitive Markets.
7. The Costs of Taxation.
8. The Design of the Tax System
9. Market failures: Monopoly, Oligopoly (and Game Theory)
10. Public Goods and Externalities.
11. Asymmetric Information.
Literature
G. Mankiw, Principles of economics, South Western College Publishing. (This book is best ordered via internet. The book by the same author called "Principles of microeconomics" is also OK. All editions, also very old ones, are OK).
Hours: Lectures: 7 x 3 hours
Basic Concepts of Law and Economics II: Comparative Law and Economics
Lecturer: Prof. Michele Abrescia / Prof. Alessandro Pomelli
Contents and purpose of the course
The aim of the course is to provide for an introduction to
the basic concepts of legal methodology and comparative legal
systems. The first part of the course will face the basic
questions "what is law" and "what is a legal system",
comparing different legal systems and legal thinking; it will
be addressed also the core question of law comparison. The
second part of the course will be focussed on legal
methodology and its application in the legal reasoning. Then,
the course will provide for a brief introduction to basic law
concepts as property, obligation, contract and liability. The
course is intended for both lawyer and economists and does
need any background in either field.
Topics
1. The role of the law and the concept of legal system
2. The concept of legal formant
3. Legal families and legal systems
3.1. German
3.2. Latin
3.3. Anglo-American
4. Basic concepts of legal methodology
5. Basic concepts of positive law
5.1. Property
5.2. Obligation
5.3. Contract
5.4. Liability
Literature
Sacco, Rodolfo (1991), Legal Formants: a Dynamic Approach to
Comparative Law, American Journal of Comparative Law, 39, 1-34 (Part I); 343-401 (Part II).
Mattei, Ugo and Monti, Alberto (2001), Comparative Law and Economics.
Borrowing and Resistance', Global Jurist Frontiers: Vol. 1: No. 2, Article 5
http://www.bepress.com/gj/frontiers/vol1/iss2/art5.
Additional materials will be distributed in class
Hours: Lectures: 5 x 3 hours
Economic Analysis of Tort Law
Lecturers: Prof. Luigi Franzoni
Contents and purpose of the course
This course will provide an introduction to the Law and Economics of Tort
Law. The course investigates the implications of liability rules on
individuals' behaviour and the causation of harm.
Topics
1. The Coase Theorem
2. Liability rules and property rules - Calabresi and Melamed
3. Optimal damages: Hand's rule
4. Strict liability vs. Negligence - Shavell
5. Causation and negligence - Kahan
6. Efficient standard formation - Schäfer and Ott
7. Optimal allocation of risk - Pindyck and Rubinfeld
Literature
Coase, The problem of social cost, 1960 -> Google Scholar
Calabresi-Melamed, Property Rules, Liability Rules and Inalienabilty: One
View of the Cathedral, 1972, Lexis-nexis
S. Shavell, 'Economic Analysis of Accident Law', NBER Working Paper 9694,
chapters 1-2-5-6. website
C. Ott en H.-B. Schäfer, 'Negligence as Untaken Precaution, Limited
Information, and Efficient Standard Formation in the Civil Liability
System', (17) International Review of Law and Economics 1997, p. 15-29,
website.
M. Kahan, 'Causation and Incentives to Take Care Under the Negligence Rule',
(18) Journal of Legal Studies 1989, p. 427-447, website.
Pindyck and Rubinfeld, Chapter on Risk. Photocopy.
Hours: Lectures: 8 x 3 hours
Competition Law and Economics
Lecturers: Prof. Pietro Manzini & Emanuele Tarantino
Contents and purpose of the course
This course aims at giving students an introduction to competition policy (also called "antitrust policy"). Simple industrial economic models will be used to analyse competition policy issues in a rigorous way. Although knowledge of industrial organisation is desirable, this is not a requirement. The material we are going to deal with makes use of elementary game theory and simple oligopoly models, which should be familiar to all graduate students.
Topics
1. Competition policy: History, objectives and the law
- Brief history of competition laws and enforcement in the US and the EU.
- Which objectives for competition policy? Are they compatible with economic efficiency?
- Brief introduction to EU competition law
2. Market power and welfare
- Market power reduces allocative and productive efficiency
- Competition policy and innovation
- Market power and free entry: contestable markets theory; sunk costs (finiteness property); switching costs; network externalities.
3. Market power and market definition
- How to measure market power
- How to define relevant (product and geographic) markets for antitrust purposes.
4. Cartels and tacit collusion
- What is collusion: economics
- Analysis of repeated games: factors which facilitate collusion
- Tacit collusion under secret price cuts
- What is collusion: practice
- Ex-ante and ex-post measures to fight collusion: leniency programmes
5. Horizontal mergers
- Single firm dominance (unilateral effects of mergers)
- Joint dominance (coordinated effects of mergers)
- The importance of efficiency gains: a simple framework of analysis
- Merger regulation in the EC
6. Vertical restraints and vertical mergers
- Vertical externalities: the double marginalisation case
- Horizontal externalities: services by retailers and the free- rider problem
- Inter-brand competition
- Welfare effects of vertical restraints: intra-brand vs inter-brand competition
- Foreclosure in vertical mergers.
7. Abusive practices
- Vertical foreclosure: exclusive dealing.
- Tying and bundling
- Leverage in network industries
- Predatory prices: long-purse and reputation models
- Tests of anti-competitive behaviour.
8. Price discrimination
- The (ambiguous) welfare effects of price discrimination
- Anti-dumping: protectionism in disguise
- Parallel imports and the incentives to innovate.
Literature
Motta, M. (2004), Competition Policy: Theory and Practice, Cambridge University Press. This book covers all the material we shall deal with in the course.
Hours: Lectures: 8 x 3 hours
Public Law and Economics
Lecturers: Prof. Matteo Lippi-Bruni
Contents and purpose of the course
The course offers an introduction to the economic analysis of
regulation. The main objective is to make students familiar
with the most commonly used microeconomic tools to assess the
allocative and distributive consequences of government
intervention in a market system The course begins with an extended treatment of welfare
economics to reach a better understanding of the
circumstances - externalities, public goods, incomplete and
asymmetric information, natural monopoly - where market
settings may give rise to allocative problems. We will then
analyse the effects of a range of private and public
institutions adopted as remedies to those problems. In
assessing the properties of different forms public
intervention, we will also focus on the issue of government
failures, discussing the properties of the main voting
schemes and the role of influence groups in shaping
legislation and regulation .
Literature
Background readings:
Gruber J., Public Finance and Public Policy, Worth
Publishers, 2005 Stiglitz J., Public Sector Economics, Norton Wiley, 2001.
Baldwin R., M. Cave, Understanding Regulation. Theory,
Strategy and Practice, Oxford University Press, 1999.
Hours: Lectures: 8 x 3 hours
Hamburg (University of Hamburg - Fachbereich Rechtswissenschaft)
Introductory Course in Formal MethodsLecturer: Stephan Wittig
Contents and purpose of the course
The economic analysis of law rests upon basic mathematical tools. This course provides students with a legal background with the basics of differential calculus and statistics. Attendance of the class is compulsory only for non-economists. However, all students who have difficulties to solve the sample questions which were sent as a self-test by e-mail in mid September are welcome to attend the class.
Literature: Some material will be distributed during the lecture
Hours: Lectures: 4x4 hours
Introductory Course in Law
Lecturer: Dr. Noah Vardi
Contents and purpose of the course
This course is designed to provide a legal fundament for further studies on law and economics for students with a legal or an economic background. The course will address key issues such as the foundations of the law and its application from a national, European and international perspective. The methodology that will be used includes statutory interpretation, case studies, and the comparative legal method. The course starts with an introduction on the interaction and distinction between different fields and sources of the law. It will then focus on selected issues in private law which highlight the differences between the common law and the civil law traditions in areas such as contract law (e.g. consumer law and commercial law; harmonisation of contract law), tort law (e.g. product liability) and property law (e.g. law of trust). The last part of the course will address problems of enforcement and differences in the judicial process.
Literature: Some material will be distributed during the lecture.
Hours: 10 hours of lectures.
Tutorial - Microeconomics
Lecturer: Stephan Wittig
Contents and purpose of the course
In each session a problem set will be solved in the group with at least three questions that refer to the course "Basic Concepts of Law and Economics I: Microeconomics". During the term each student has to complete at least two exercises with one partner on the whiteboard. Therefore, preparation at home is necessary. Each presenting group will consist of one Lawyer and one student with a background in Economics or at least basic knowledge of Economics. Each student is requested to solve the whole problem set at home in order to be capable of solving the problems on the whiteboard. If a group that is responsible for solving a problem cannot solve it, the lecturer will randomly choose another student to solve the problem on the whiteboard.
Hours: 2 hours per week
Basic Concepts of Law and Economics I: Microeconomics
Lecturer: to be announced
Contents and purpose of the course
The economic analysis of law investigates legal norms under an efficiency perspective. It is therefore necessary to understand the basic concepts of microeconomic theory. The course provides some basic analytical and normative concepts of economics which are important for the economic analysis of legal norms. The main subjects are the microeconomic way of explaining and predicting human behaviour, the basics of supply and demand, consumer choice, market structure, asymmetric information, and an introduction to game theory.
Literature
Pindyck, R.S. and Rubinfeld, D.L., Microeconomics, latest edition, MacMillan
Varian, H., Intermediate Microeconomics, latest version
Some material will be distributed during the lecture.
Hours: Lectures: 10 x 2 hours
Basic Concepts of Law and Economics II: Comparative Law
Lecturer: Dr. Patrick Leyens
Contents and purpose of the course
The course starts with the economic analysis of core concepts of contract law (freedom of contract, contract formation, contract interpretation, gap-filling by courts, pre-contractual liabilities and breach of contract). It then turns to the problem of efficient breach, explores differences between contractual and tortuous liabilities with an excursion on professional liabilities. A brief look is spent on the law of unjust enrichment. Property law is touched upon with a view to the economics of bona fide transfers. Finally the interaction of contracts, corporations and markets will be explored from the perspective of modern comparative research (empirical methods). Each session starts with a repetition of the foregoing class. The course concludes with a full class on exam training.
Literature
Zweigert/Kötz, An Introduction to Comparative Law, 3rd ed., Oxford 1998
Schäfer/Ott, The Economic Analysis of Civil Law, London 2004.
All additional reading materials will be available online.
Hours: Lectures: 9 x 2 hours
Economic Analysis of Tort Law
Lecturer: Prof. Dr. Thomas Eger
Contents and purpose of the course
This course offers an introduction to the economic analysis of tort law and insurance. The first part of the course is devoted to the economic efficiency of legal liability rules. The economic goal of tort law is the minimisation of the social costs of accidents. Tort rules are analysed as devices which should give potential tortfeasor incentives to take efficient care and adopt an optimal activity level. It will be analysed under what conditions alternative legal rules (negligence, strict liability, contributory negligence, comparative negligence) contribute to efficiency. The theoretical insights about efficient liability rules will be confronted both with the general legal doctrines and specific rules of liability for certain types of accidents. The second part of the course will be devoted to insurance problems. The availability of insurance may alter the incentives to take care. Moral hazard may cause adverse selection and cause the breakdown of insurance markets. Devices to overcome the moral hazard problem will be discussed. A related topic of the course will be the impact of insurance availability on the tort system.
Literature
Cooter, R., Ulen, Th., Law and Economics, Glenview, Scott, Foresman & Co, latest edition
Shavell, S., Economic Analysis of Accident Law, Cambridge, Harvard University Press, latest edition
Students will receive a syllabus with reading assignments
Hours: Lectures: 10 x 2 hours
Competition Law and Economics
Lecturer: Prof. Dr. Thomas Eger
Contents and purpose of the course
This course is devoted to an economic analysis of the competition law of the European Community (Articles 81-82 EC Treaty and Regulation 4064/89). The EC competition rules will also be compared with American antitrust law and competition law of the European member states, where these comparisons may provide better insights as far as the economic (in)efficiencies of alternative legal solutions are concerned.
The course will then proceed with an introduction to the economic theory on competition. Static and dynamic approaches toward competition will be compared. The antitrust analysis of the Harvard School (structure-conduct-performance paradigm) will be confronted with the alternative approach of the Chicago School, based on neo-classical price theory. The third part of the course will focus on a number of heavily debated issues in European competition law, using efficiency concepts as the basic tool of analysis. The following topics will be discussed: the concept of the 'relevant market', the treatment of vertical restraints (e.g. resale price maintenance, exclusive distribution, selective distribution, franchising), predatory pricing, tying, measures of market concentration (CR4, HHI) and assessment of mergers. In the last part of the course students will also be asked to comment upon a number of controversial decisions of the European Commission and judgements of the Court of Justice in competition cases.
Literature: Van den Bergh, R. and Camesasca, P.; European Competition Law and Economics: a comparative perspective; 2nd edition 2006, Sweet & Maxwell
Hours: Lectures: 10 x 2 hours
Public Law and Economics I: Public Regulation and Public Choice
Lecturer: Prof. Dr. Stefan Voigt
Contents and purpose of the course
This course offers an introduction to the economic analysis of regulation, mainly to government intervention in market processes. The main questions that will be dealt with in this course are: Why regulation? What is the purpose of the intervention? And is this particular regulatory intervention the most efficient?
In the first part of the course basic conceptual tools from micro-economic theory will be applied to questions of regulation. A more extended treatment of welfare economics will be given. Other more extended topics are: Externalities and the Coase theorem, public goods, Cost-Benefit analysis and the influence of pressure groups on the regulatory activities of the public sector. In the second part attention will be focused on important issues of regulation, such as the regulation of natural monopolies and environmental regulation. The purpose of this course is to introduce students to the economic techniques which are used to assess the economic effects of regulatory activities. Students are considered to be able to understand the significance and results of these assessments. Special emphasis will be laid on the institutions of the European Union.
Literature: To be announced
Hours: Lectures: 10 x 2 hours
Rotterdam (Erasmus University Rotterdam - Law Faculty)
Mathematics (crash course)No specific information available yet.
Basic Law (crash course)
No specific information available yet.
Basic Concepts of Law and Economics I: Microeconomics
Lecturer: Prof. P.G. Babu
Course aims:
The aim of the course is to introduce prominent microeconomics theories, and to equip the students with basic economic tools, in order to lay the ground for the application of economic insights into different legal fields.
Contents:
The main purpose of this course is to equip students with a set of conceptual microeconomic tools that can be applied to many different economic and regulatory issues.
After the discussion of the basics of supply and demand mechanisms, consumer and producer behaviour will be explained. A substantial part of the course is dedicated to the analysis of economic effects of different market structure (perfect competition vs. monopoly) and competitive strategy. Furthermore the course provides for a short introduction to game theory. The usefulness of the microeconomic subjects taught will come to the fore in the courses Economic Analysis of Competition Law and Economics of Public law.
Literature: Pindyck & Rubinfeld, Microeconomics, latest edition
Hours: 8 hours per week during 3 weeks
Basic Concepts of Law and Economics II: Comparative Law
Lecturer: Dr. Rob Jagtenberg & Dr. Ann-Sophie Vandenberghe
Course aims:
The aims of the course are to:
- Introduce the student to comparative private law, from an economic point of view;
- Provide the student with tools for the comparative economic analysis of legal systems, as well as of particular legal rules.
Contents:
In the context of the European Union much attention is paid to the possibility and desirability of the harmonization and unification of substantive and procedural law. A particular problem hereby is formed the differences between the Common Law of England and Ireland on the one hand and the Civil Law of the continental countries on the other.
In the course the possibility of a European Private Law is analyzed from an economic point of view. Law and economics has been developed in a Common Law country (The United States), but has proven to be useful for civil law as well. Moreover, it provides a universal framework for comparing and evaluating legal rules.
Topics that are included in the course are:
- Differences among legal systems, especially between common law and civil law;
- The desirability of unification;
- Possibility and methods of unification, especially common core analysis and legal transplants;
- Sources of law and order (especially judge made law, statute law, social norms, custom, and trust);
- The competitive relationship among sources of law;
- A case study in the fields of property, contracts or torts.
Literature: Besides the lecture notes, that focus on the economic aspects of law, the required materials consist of Zweigert and Kötz's, An Introduction to Comparative Law. This excellent textbook provides for an overview of the important institutional differences among legal systems (as well as for a detailed analysis of the differences in contract law and the law of torts).
Hours: Lectures: 10 x 2 hours
Economic Analysis of Torts and Insurance
Lecturer: Dr. Louis T. Visscher
Course aims:
The aim of this course is to introduce students to the economic analysis of torts and insurance. The law and economics approach provides a systematic framework for analysis, with which it is possible to analyze the different elements of a tort and the way in which these elements interact. The course enables students to analyze the possible effects of different legal rules on the behaviour of (potential) injurers and victims, and thereby on the possible preventive effects of tort law. The traditional legal view that tort law is primarily concerned with providing (ex post) compensation in actual accident situation will be challenged, and instead the view that the threat of liability provides (ex ante) incentives to actors will be presented , so that tort law (or liability insurance) can be used to influence this behaviour in a desired manner.
Contents:
In this course we apply (micro)economics to problems in accident law by exploring which effects legal norms really have and which purpose is pursued in legal theory and practice. Law-and-economics is used to suggest options for specific legal problems by use of an economic analysis and assessment of consequences. In our opinion economic analysis can clarify the operation and hence the proper meaning of legal institutions.
First, the goals of tort law will be analyzed. Then the basic principles of the economic analysis of tort law will be discussed. Focus is on the precaution-model, causation, fault, negligence (including contributory and comparative negligence), strict liability and damages. We will look at the special topics of products liability and liability for traffic accidents, as well as on the question how the availability of insurance influences the choice of an optimal liability rule. The economics of risk and insurance are necessary elements in our discussion.
Literature: Reader
Hours: 4 hours per week
Economic Analysis of Competition Law
Lecturer: Prof. Roger Van den Bergh, Dr. Peter Camesasca
Course aims:
• Provide students with a basic insight in the main economic approaches in industrial organization
• To understand the application and the importance of economic arguments in EC competition case law
Contents:
Competition policy is a term used broadly to describe intervention by public authorities to ensure competition in markets for goods and services. Competition law consists of three parts: prevention or control of agreements between firms to limit competition (through cartels or tacit collusion), control over abuse of market power, and control of concentrations through mergers and acquisitions.
The main purpose of this course is to provide students with the knowledge to understand the application of and the importance of economic arguments in EC competition law cases. A basic knowledge of both micro-economics (price theory) and European competition law (articles 81-82 EC Treaty and the Merger Regulation) is required to fully profit from the lectures discussing the different approaches adopted by competition authorities.
Literature: Roger J. Van den Bergh and Peter D. Camesasca, “European Competition Law and Economics: A Comparative Perspectiveâ€, 2nd edition, London, Sweet & Maxwell, 2006.
Public Law and Economics
Lecturer: Dr. Alessandra Arcuri
Course aims:
This course has the aim of introducing the students to the basic analytical tools that constitute the foundation of the economic analysis of public law and enable them to critically apply these tools to concrete cases. Students will train their analytical - both oral and writing - skills by active class discussion and presentations of their work.
Contents:
This course offers an introduction to the economic analysis of regulation, which is interpreted as third party interference in market processes. The main questions that will be dealt with in this course are: What is the purpose of regulatory intervention? Which is the most appropriate level of decison-making (local, national or supranational)? Is a particular regulatory intervention the most efficient? Is self-regulation a feasible alternative? Do the benefits of regulatory intervention justify its costs? In the first part of the course, insights from welfare economics will be applied to questions of regulation. In the second part, attention will be focused on important issues of European regulation, such as the subsidiarity principle and the proportionality principle. In the third part, attention will be paid to the strengths and weaknesses of cost-benefit analysis.
Literature: A reader will be provided.
Hours: Lectures: 10 x 2 hours
