Law and Economics The law and economics movement applies
economic theory and method to the practice of law. It asserts
that the tools of economic reasoning offer the best possibility
for justified and consistent legal practice. It is arguably one
of the dominant theories of jurisprudence. The law and economics
movement offers a general theory of law as well as conceptual
tools for the clarification and improvement of its practices.
The general theory is that law is best viewed as a social tool
that promotes economic efficiency, that economic analysis and
efficiency as an ideal can guide legal practice. It also
considers how legislation should be used to improve market
conditions in return. Law and economics offers a framework with
which to model legal outcomes, and common objectives with which
to unify disparate areas of legal activity. The bringing
together of legal theory and economic reasoning has also created
new research agendas in the fields of behavioral economics: how
rationality affects people’s beha