Studying Law at Roma Tre

Studying Law at Roma Tre Syllabus

Economic Analysis of Law Spring 2016 7 CFUs - ECTS, (Mondays, Tuesdays, 12:00-13:30; Wednesdays 8:30-10:00)

Prof. Giacomo Rojas Elgueta with Dr. Francesco Mezzanotte

Office hours: After Tuesdays’ classes

Email: [email protected]; [email protected]

Course description:

The Economic Analysis of Law class allows students to look at legal rules from a different and wider point of view in comparison with the traditional hermeneutic method. The purpose of the course is to analyze the legal phenomenon through the economic lens and, more specifically, through the notions of neoclassical economics. The predictive ability, typical of the economic reasoning, allows one to determine which incentives are placed on individuals by different laws and, consequently, which effects should be reasonably expected from the adoption of a certain rule. The “Law and Economics” method aims to select efficient rules capable of maximizing the social welfare.

The starting point of the course is the analysis of microeconomics’ basic notions (e.g., Demand and Supply Curves, Monopoly, the Pareto principle, the Homo Economicus). Furthermore, the analysis of the so called Transaction Costs and of the Coase Theorem, which shows that legal rules matter, allows one to go into the merits of the subject and to take into consideration the foundations of “Law and Economics” through which the following areas of private law are contemplated: Torts, Contracts, Property Law, Corporate Law and Bankruptcy Law. The course reckons the most recent developments of “Law and Economics” and in particular addresses the “Behavioral Law and Economics” method, which supplements the rational choice theory with the insights of cognitive psychology.

Course Learning Objectives

 To introduce students to the foundations and the main topics of the Economic Analysis of Law.  To introduce students to the ‘Law and Economics’ methodology.  To provide students the necessary tools to evaluate the efficiency of legal rules with regard to Property Law, Contracts, Torts, Corporate Law and Bankruptcy Law.  To learn about cutting-edge research in law and economics.  To understand the link between law, psychology and human behaviour.

Course Learning Activities The course consists of lectures on the main subjects of ‘Law and Economics’, followed by outside speakers workshops and discussion sessions that are meant to support the lectures and encourage interactive student participation.

1 Studying Law at Roma Tre Syllabus

Assessment tools Student evaluation will be based on class participation, oral presentations given during the semester, and a final written exam.

Attendance policy Class attendance is compulsory.

Course materials A selection of readings from various sources will be used as indicated during the semester.

Course Schedule: Classes start on Monday, March 7 Class Topic and/or Activity

1. Mon. 7 Introduction to the Economic March Analysis of Law

2. Tue. 8 Microeconomics: March  Pareto and Kaldor-Hicks Efficiency

3. Wed. 9 Microeconomics: March  Demand and Supply Curves  Determination of Market Price and Quantity  Monopoly

4. Mon. 14 L&E Methodology: March  The Coase Theorem  Externalities

5. Tue. 15 L&E Methodology: March  Guido Calabresi: Property Rules, Liability Rules and Inalienability.

6. Wed. 16 L&E Methodology: March Cases and Applications of Property Rules v. Liability Rules

7. Mon. 21 Torts: March  Unilateral Accidents and Levels of Care

8. Tue. 22 Torts: March  Bilateral Accidents and Levels of Care

9. Wed. 23 Outside speaker or student March presentation

10. Mon. 4 Property Law: April  Economical classification of goods  Economic rationale of Property Law

11. Tue. 5 April Property Law:  Division of Property Rights The Tragedy of the Anti-commons

12. Wed. 6 Outside speaker or student April presentation

13. Mon. 11 Contract Law: April  Economic rationale of contract law  Free riding and adverse selection

14. Tue. 12 Contract Law: April  Contracts v. vertical integration  Incompleteness of Contracts

16. Mon 18 Contract Law: April  Economic Analysis of Contracts - e.g.:  Sharecropping  Franchising

17. Tue. 19 Contract Law: April  The economic of contracts’ remedies  Efficient breach

19. Tue. 26 Behavioural Law and Economics: April Introduction and Methodology

20. Wed. 27 Behavioural Law and April Economics: Regulatory Interventions

21. Mon. 2 Corporate Law: May  What is the Purpose of Corporate Law?  Agency Problems

22. Tue. 3 Corporate Law: May  Governance Structure  Creditors Protection

23. Wed. 4 Outside speaker or student May presentation

24. Mon. 9 Bankruptcy Law: May  Corporate Bankruptcy

25. Mon. 10 Bankruptcy Law: May  Consumer Bankruptcy

26. Wed. 11 Outside speaker or student May presentation

27. Mon. 16 Corporate Law: May  Understanding the Financial Crisis of 2008-2011

28. Tue. 17 Outside speaker May

29. Wed. 18 Closing lecture May