933712

Target group

The course is designed for PhD students in law who wish to draw inspiration from theories of law and economics, and/or to include a law and economics perspective in their thesis. The course is open to all Nordic PhD students of law.



Before the course, participants are required to:

1. Study the required readings above

2. Formulate their basic research questions, if they have not yet done so. For this purpose you should read `The Craft of Research´; this text will not be explained but its ideas are likely to become clear when we discuss research questions.

3. Also, you should formulate, if relevant, for the main situation or game addressed by your research question:

- who the `players´ (the main actors) are
- what their preferences are (what are they trying to achieve?, are they risk averse or risk neutral?, do they care about fairness and if so, in what way?)
- what strategies the players can choose

4. Think about the extent to which the formal legal sources (legislation, precedent, custom, but not ´real factors´) fully determine (potential) rulings within your area of law.

You should send your research questions and the description of the game, even if tentative, to hl.jur@cbs.dk two weeks before the course. If this proves difficult, please contact us.

Day 1: December 7

The morning sessions of the first day introduce basic concepts from law & economics and game theory, primarily based on Analytical Methods for Lawyers Chapter 2, p. 34-117. (Chapter 1 should be read but will not be addressed in class).

The purpose is to acquaint the student with fundamental notions used in functional analysis of law, notably equilibrium analysis and efficiency concepts. The coverage of game theory includes the Nash-equilibrium concept, prisoner’s dilemma, moral hazard, adverse selection, basic theory of bargaining, and the theory of contracts.

Morning    sessions:
   

9am – 9.45 am:

- Course introduction (Lecturer: HL)

- Introduction to functional analysis of law (Lecturer: GN)

10.00 – 10.45 am:

 - Introduction to game theory. On fundamental concepts, equilibrium, efficiency and social welfare functions (optimality criteria). (HL)

11.00 am – 11.45 am:

Nash-equilibrium, the prisoner’s dilemma (table 2-2), and the litigation game (p. 34-50). The theory is further briefly explained; then we discuss a set of problems in the litigation game, handed-out in class. This will be group work, and one group shall briefly present its discussion in class. (Lecturer: HL)

12 am – 1 pm:

- Functional analysis of tort law. (Lecturer: GN)

The representation and analyis of norms is illustrated by comparing strict liability and negligence regimes. General questions such as legal protection of entitlements, transaction costs and the Coase Theorem are briefly discussed (primarily based on Economic Theory of Accident Law, Chapter 2, and the Calabresi & Melamed article on the optional reading list.). A set of problems, to be handed-out in class, will be discussed in groups.

Lunch 1pm – 2pm.



Afternoon sessions:

2 pm – 2.45 pm:

Functional analysis of contract law and the Coase Theorem. (Lecturer: HL)

3 pm – 3.45:

Group work: Question 1.-4. in ”A note on the Coase theorem” (Lecturer: GN)

The example illustrates the relevance and power of the law & economics approach to fundamental questions in law. Participants are encouraged to consider the questions ahead of the session.

Day 2: December 8

The second day seeks integrate and lift lessons and perspectives from day one to the level of method. What is the relevance of functional analyis to legal method and/or to legal research?

Morning sessions:


9am – 9.45 am:

Opening remarks: Is legal method and legal research the same thing? (HL, GN)


10.00 am – 1 pm:

Group work: Session 1:

Discussion of the following questions:

• Do legal sources uniquely determine outcomes (potential court rulings) within the area of your thesis?
• If not, do you see a role of functional analysis? How? If relevant to your project, explain who your players are, what their preferences are, and what their strategies are.
• If legal sources are not determinative, are they interpreted in light of the purpose of the law?
• Is there in your field an articulation of the purpose of the law?
• In case it exists, how would you articulate the purpose of the law? Can it be formulated with efficiency concepts or by the concept of a social welfare function?
• If the purpose is not given by the law, is it based in part on empirical evidence concerning what people value, or what are its foundations?

Lunch 1pm – 2pm



Afternoon sessions:


2 pm – 2.45 pm:

Group work: Session 2:

Discussion in class of the answers to the questions above, including how functional analysis may contribute to the project specific or general legal analysis, and how the analyses may be conducted within the framework of game- and equilibrium theory.

3 pm – 3.45 pm

Summary and reflection over the course’s main points. (HL and GN)

The course aims to provide the student with an understanding of: 

1. basic game theoretic concepts, such as  utility-functions, expected utility maximisation, Nash-equilibrium, prisoner’s dilemma, moral hazard, and adverse selection.      
2. the applicability of these concepts to the analysis of select questions in contract law, in legal procedure and in tort law, and to the student’s own project
3. some basic concepts and theories of law and economics, such as the theory of contractual and delictual compensation,  the Coase theorem, and the theory of litigation
4. the applicability of some of those theories to the student’s own project
5. the use of social welfare functions in the analysis of law, mainly concerning the role of fairness and efficiency
6. modern developments in economic analysis of importance to law, mainly concerning the incorporation of psychology (reciprocity and self-beliefs)

Course Fee

PhD students from JurForsk institutions or Høgskolen i Sørøst-Norge: 850 DKK for refreshments during the course and one joined dinner for faculty and students on the first course day

Other students will be charged a full course fee DKK 3.250

Please contact Henrik Lando (hl.jur@cbs.dk) or Blazenka B. Kvistbo bbk.research@cbs.dk if you need more information