The subjects of both law and economics are two very dissimilar things, however, when used together, can be quite effective. The integration of the two also would be beneficial in meeting certain political, social, and cultural objectives. Combining both law and economics would be an essential component of a democratic set-up and would facilitate legislators to implement their strategies on basic healthcare, education and gender justice. Richard Posner, author of Economic Analysis of Law, was the first to argue that the common law demonstrates an economic logic that is largely a result of the effort of judges to promote efficiency. His rationale behind this was that judges cannot do much to alter the slices of the pie that various groups in society receive, they might as well concentrate on increasing its size (252).
[...] In some situations, the law will focus on legal responsibility in an extensive and more widespread foundation. Strict liability may be enforced when one particular party has greater information regarding the case, or for some reason is able to manipulate certain components of the suit. In these circumstances, one party is better arranged to insure against the possibility of loss or to distribute the cost of a loss over multiple transactions. The process of strict liability within cost benefit analysis is illustrated; In such situations a known potential risk, as a by product or externality of a useful undertaking, maybe be assigned to the least cost avoider ( the party best able to cover or control the risk). [...]
[...] Thus, it contributes to an impressive expansion of law and market thinking brought on by a variety of approaches that might collectively be called the law and economics.” Examples of approaches include ventures into behavioral law and economics (referencing work in behavioral psychology and sociology), the law and economics of norms (referencing theories or norm building and of informal relationships and organizations), institutional law and economics (referencing institutional economics rather than the more traditional appeal to neoclassical economics), feminist law and economics (referencing feminist theory), and interpretive and representational law and economics (referencing the humanities, various forms of interpretation and rhetoric theory, and law and society) The book features an in-depth look at how to understand economic concepts within legal reasoning from several perspectives, including that of Law and Society, Law in general, culturally, as well as the Humanities. [...]
[...] Malloy describes the benefit model and its purpose in economics as well as in law, The cost and benefits model is used to represent the idea of a market, and the possibility of achieving a finite point of equilibrium. This idealized representation promotes the cultural interpretive position that suggest and efficient and wealth maximizing point can be calculated and translated into public policy through law. The goal of the model is to find a balance between costs on the one hand and benefits on the other. [...]
[...] Occasionally the Kaldor Hicks efficiency test is used in association with the term, liability rule, which can be defined as setting apart from property rule on the reasoning of law gives it a weaker presumption of protection relative to the tension between private/self interest and the public interest During times where the right defended by a liability rule is in dispute, it can be subject to a Kaldor Hicks test in order to figure out its social value. Within the United States economy there are three classifications; the private sector, the public sector and lastly, the non profit or not for profit sector. [...]
[...] In order to have a strong legal argument, one must be knowledgeable of not only basic law terms and expressions, but able to comprehend meanings and principles within certain legal, market and cultural stances. By using Peirce's triadic method of signs, it leads to a better understanding of multifaceted relationships within cases. Not only does this contribute to building solid cases, but the triadic theory also supplies a way to created larger, more innovative, reasonable and wealth promoting relationships. Laying a foundation for law and market economy is important when trying to fully understand the fundamental concepts relating to law and market economy, as well as understanding law within a market perspective. [...]
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