Student guide Faculty of Law A.Y. 2010/11

Economic Analysis of Law
Aim of the course
The aim of the course is to teach the basic concepts required to understand the method of economic analysis of law, and to illustrate some of its most important applications.
In particular, the first part of the course will include some historical details of the introduction and early dissemination of this method in the USA, and its later developments in Italy. The economic analysis of law will then be defined in terms of its fundamental principles, especially the principle of efficiency, and particular attention will be devoted to the concepts of economic theory which are used in the application of this method.
Some areas of law which have been analysed in depth in the literature on economic analysis of law will be covered In the second part of the course. This second part will include a theoretical illustration of the characteristics of the various areas together with the presentation of practical cases.
1.  Introduction:  definition, historical introduction and concept of market.
2.  Market failures, externality and the Coase theorem.
3.  Liability for accidents.
4.  Liability, insurance, and information imbalances.
5.  Contracts.
6.  Contractual liability.
7.  Property.
8.  Deterrence and sanctions.
9.  The structure of law.
If numerous students register for the course, a written exam will be held; otherwise an oral exam will be held.
Reading list
Shavell, S., (Italian translation by Donatella Porrini), Fondamenti dell''analisi economica del diritto, Giappichelli, Turin, 2005.

Further reading will be suggested during the course.