Becker's Economic Approach to Law

Becker's Economic Approach to Law applies economic principles to understand legal rules and behavior. It views law as a tool to influence people's actions by minimizing costs and maximizing benefits. For example, laws that impose penalties for theft aim to deter crime by making the cost outweigh the benefit. This approach analyzes how legal rules shape decisions, encouraging efficient outcomes by balancing incentives and disincentives, ultimately promoting societal welfare through rational, cost-effective choices.