Legal Economics

Legal economics is the study of how legal rules and institutions influence economic behavior and outcomes. It examines the costs and benefits of legal decisions, including how laws affect market efficiency, economic incentives, and resource allocation. By applying economic principles to legal issues, such as property rights, contract enforcement, and liability, legal economics helps us understand the impact of laws on individuals and businesses. Ultimately, it seeks to find ways to create legal frameworks that support fair competition, innovation, and social welfare.