Economics 238: Law & Economics

Syllabus

 

Alan C. Marco, Vassar College

133 Blodgett, 437-7669, marco@vassar.edu

 

Introduction

Law and economics is a relatively recent field of study in economics. It is also one of the major theoretical approaches to law taught at major law schools. Anyone even considering going to law school should take this class. However, this course is not meant to teach economics to prospective lawyers. Rather, it is designed to teach how to apply economic analysis (marginal analysis, trade-offs, opportunity cost, supply and demand, incentives, etc.) to matters of law and politics.

 

Most of the topics in this course will address the question: “What should the law be?” as opposed to “What does the law say?” The latter question is one for lawyers, and it is the one on which most law school courses focus. The former question is (in my opinion) much more interesting, and it contains big public policy issues.

 

In this course we will cover topics in “private” law as opposed to “public” law. Traditional law and economics classes focus on private law, broadly comprising property, contracts, and torts (accidental harm). We will also cover criminal law and regulation. Some courses also address public law, comprising constitutional issues, public choice (elections, the structure of government, voting rules), and administrative law. If there is time, we will cover some public law topics, especially public choice.

Prerequisites

Officially the only required class is Economics 101: Introduction to Microeconomics. Intro Macro (Econ 100) is not a substitute for this. Obviously, those who’ve had intermediate micro will have an easier time picking up some of the applications. However, I will try to present the theory we need in class. If you’re having trouble please see me right away. I can get you up to speed quickly.

 

As far as math requirements, we will be using mostly graphical and algebraic analysis. We will be learning some game theory also, but the solutions to most of the games don’t require more than simple algebra. However, be forewarned: this is an analytical class. We will be using formal logic to analyze legal issues. We will not be using a lot of verbal arguments. If you were expecting something similar to a political science class, you should change your expectations.

Requirements

The grading will be broken down as follows:

 

Class participation

5

Assignments (best n-1) out of n

30

Midterm examination

30

Final examination

35

 

Class participation includes doing the reading before the lecture in which we discuss it. This will be especially important on the days we discuss cases.

 

There will be frequent assignments during the course of the semester. Some assignments will be problem sets, where you will solve analytical problems. Some assignments will be short writing assignments: one to three page case analyses. The cases will be real court cases to which you will apply economic analysis according to guidelines given out with the assignments. I expect there to be 6-10 assignments during the semester. The lowest assignment grade will be dropped. This is your one freebie, which covers illness, emergency, and laziness. Late assignments will not be accepted.

 

Both exams may contain a take-home portion.

Staying in touch

You are responsible for reading this syllabus, and you are responsible for knowing the deadlines contained herein. If you are uncertain about anything you read here, it is your responsibility to ask me to clarify it. You are also responsible for updates that I make to this syllabus in class or by email. While attendance is not technically required, absence from class is not an excuse for not knowing about an assignment or not participating in class discussion. Hence, attendance is de facto required.

 

I will be using an email list for this class. This is the best way for me to keep you up to date on issues that arise in the class. You may also use the list to look for study partners or other class related business. It is in your own best interest to check your email since some of the emails may include items like “there was a typo on problem set one…” Email works well for short questions, including clarification on problem sets. However, I do not discuss the problem sets in detail until after they are due.

Assignments

Assignments are due at the beginning of the lecture (absence is not an excuse for not turning it in), and my preference is that the assignments be done in groups of up to 3 students maximum, unless otherwise stated. You may work alone, but I don’t recommend it. Only one problem set should be turned in for each group (the group will receive one grade). You may change groups from assignment to assignment, but the names of the students contributing should be clearly marked on the front page. This policy is designed to encourage you to work together, not to divvy up assignments. If it becomes clear that this is not happening, I may revoke the policy.

 

For each discrete section of the course, there will probably be one problem set and one write-up. The reading will be required and we will discuss it in the class in which the assignments are due. Assignment grades are designed to seriously punish those who don’t turn one in. I want there to be a large difference between a low grade and not turning it in.

Exams

The exams will consist of both problems and case analyses, so the assignments and discussions should be a good preparation for that. A portion of the exam may be take-home. The take-home portion will likely be a case analysis. I design exam questions to be hard. I expect no one to ever get 100% on any exam. This is purposeful: I want to test what you know. If several people get 100%, then I haven’t gotten a good idea of what you know and do not know.

 

There is no such thing as rescheduling an exam. Do not miss exams. You are responsible for knowing that you can make it to exams---that you don’t have conflicts. Do not schedule plane tickets until you know when all your exams will be. The only exception is with the Dean of Studies approval.

Readings

There is one textbook for the course:

 

*  Law & Economics, 3rd Edition, by Robert Cooter and Thomas Ulen (denoted LE in Course Outline).

Cooter was my instructor at Berkeley and the book is quite good. There is a companion website for the text at http://www.cooter-ulen.com/. I recommend familiarizing yourself with this site since some of the cases I assign may come from this site.

 

Textbook readings are mandatory; you are responsible for the material covered within the assigned chapters before the lecture in which we cover that material. Then during lecture, you will be well prepared and can take notes on those things that I add or with which you have trouble. You don’t need to read in depth, but you need to understand key concepts, models, and cases. This will give us more time for examples and cases in class.

 

Case readings and readings from outside the texts are most definitely mandatory, and will affect your class participation grade as well as your performance on exams.

 

NOTE:

Academic accommodations are available for students with disabilities who are registered with the Office of Disability and Support Services. Please schedule an appointment with me early in the semester to discuss any accommodations for this course which have been approved by the Director of Disability and Support Services as indicated in your accommodation letter.