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Theory and Practice of the Economic Analysis of Law

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THEORY AND PRACTICE OF THE ECONOMIC ANALYSIS OF LAW

POSSIBLE TOPICS FOR SEMINAR PAPERS

1. General Approaches
Overview paper on classical, behavioural, neuro-economical approaches.

2. The Assumption of Economic Rationality
Standard economic analysis assumes that people are rational maximizers of their own utility. This assumption consists of a cognitive element (“thin rationality”, the assumption that people’s preferences meet the requirements of completeness, dominance, invariance, etc.), and a motivational one (“thick rationality”, the assumption that ultimately people only care about their own utility). Students should analyze the fruitfulness and limitations of this assumption, as well as ways to overcome these limitations.

3. Theories of Human Motivation
Overview about classical and new theories of human motivation, supplementing and/or challenging the idea of economic rationality as prime human motivation.

4. Economic Analysis and Commensurability
Much of the attractiveness of economic analysis stems from the possibility of quantifying people’s preferences in monetary terms, which in turn facilitates the use of mathematical models to explain and predict human behavior, as well as to derive normative and policy implications. This raises the debate about the comparability and commensurability of values.

5. Economic Analysis of Law and the Endowment Effect
There are competing explanations for the Endowment Effect and some economists actually doubt its existence. It is relevant for the Coase theorem as well as to other legal issues. There is some, but not much, overlap between this topic and the topic of default rules.

6. Economic Analysis of Default Rules (jus dispositivum)
Students may focus on contract default rules, or extend the topic to default rules in other legal spheres. Since Ayres & Gertner’s seminal paper, there is much

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