Economics 4450/6450
Law and Economics Syllabus
David B. Mustard

Mustard Homepage
Economics 4450/6450 Homepage
 
 
Purpose
     Law and economics is one of the fastest-growing areas of applied microeconomics. It uses the standard microeconomic tools and concepts of scarcity, choice, preferences, incentives, supply and demand to explain legal and political rules, social conventions and norms, firms and contracts, government organizations, and other institutions. Our perspective will be that of the economist, trying to understand these institutions by reference to purposeful human choice. 
     Law schools are devoting increasing attention to understanding the economic analysis of law. Therefore, this course provides solid preparation for students who are interested in going to law school.
     This course assumes a strong working background in microeconomics. (ECN 4010 is a prerequisite). If it's been a while since you had intermediate micro, you may have to put in some extra time reviewing the material as we discuss it during the course.
     "For the rational study of law the blackletter man may be the man of the present, but the man of the future is the man of statistics and the master of economics." Oliver Wendell Holmes. 1897. "The Path of Law", Harvard Law Review, Vol. 10.

   
Web Site
     You are responsible for checking the class web site regularly. All announcements and changes will be posted there. If you have administrative questions, please check the web site first. Your second source of information on administrative matters is classmates. You should contact me only after you have pursued these first two options. 

Required Reading
     The textbook is David Friedman, Law's Order: What Economics Has to Do with Law and Why it Matters (Princeton, NJ: Princeton University Press, 2000). It will be available in all the usual places.
     Articles from various sources are linked directly on the outline of notes.
     Later in the semester I may assign a course reader. If I choose to use it will let you know when and where the course packet is available.

Examinations and Grading
     For undergraduates (4450) the course grade will be based on one paper (10%), two midterms (40%), a comprehensive final (35%) and class participation (15%). The class participation grade will be a function of quality and frequency of participation.
     For graduates (MBA, MAcc, MPA) (6450) the course grade will be based on one short paper (10%), one long paper (20%), two midterms (30%), a comprehensive final (30%) and class participation (10%). The class participation grade will be a function of quality and frequency of participation.
     Exams will be based on both the class notes and required reading. There will be no make-up midterm exams. If you do not take a midterm, the weight of that midterm will be applied to your final exam. Your decision must be made before the midterm begins. You cannot take the midterm or part of the midterm and later choose to drop it. This policy obviously allows students to skip all the midterms, and place 75% of their course grade on the final. However, students who pursue this strategy overwhelmingly do poorly. 
  Failure to take the final exam at the scheduled time will result in a grade of zero. Therefore, if you know that you will not be able to take the final at the assigned time, you should not take this course. Two exceptions to this rule are: 
    (1) You have another exam scheduled for the same time or three exams scheduled on the same day, and this is your lowest numbered course. The procedure for rescheduling final exam conflicts has been revised. You are are no longer required to go to the Office of CurriculumSystems to fill out the necessary paperwork. Instead, you can complete the necessary forms on-line from:          www.bulletin.uga.edu
                       www.curriculumsystems.uga.edu
    In this case please let me know one week prior to the last day of classes

    (2) if the Office of the Vice-President for Student Affairs (110 Old College) verifies that you have a family emergency or personal illness. If this occurs please let me know before the exam or as soon as possible after the exam

The midterms will be in the classroom during the normal class period and  are tentatively scheduled for
    Tuesday 19 February 2008
    Tuesday 25 March 2008
The University's final exam schedule is posted. Our exam will be in the normal classroom and is scheduled for
    Thursday 1 May 2008 at noon-3 pm.
The exam grades will be posted on the site as soon as they are finished, and will include an approximate breakdown of scores into A, B, C, D and F ranges. However, I record your grades as test scores, not as letter grades. After the final, the both your final exam score and your letter grade for the course will be posted. 

The first day of classes is Tue. January 8, 2008.
The last day to withdraw is Tue. March 4, 2008.
The last day of class will be Thurs. April 24, 2008.

No extra credit will be given for the course

Academic Honesty: UGA's Academic Honesty Policy will be strictly enforced in this course. I strongly urge you to become particularly familiar with Section 5 that discusses prohibited conduct.


Papers
      The paper assignments will differ for undergraduates and graduates. 
     All papers must be handed in at the beginning of class. Papers not handed in at the beginning of class will be assessed late penalties. For each 24-hour period after the paper is due, there will be a penalty of 10% reduced from the grade.
     Directions for the papers are on the papers page

Trial, Jury Service and class off
     The paper involves participating as a juror in a mock trial through UGA Law School's evidence class. The trial is tentatively scheduled for:
    Wed. 9 April 2008: Trial Day 1(10:30-11:20 am.)
   
Thurs. 10 April 2008: Trial Day 2 (10:30-11:20 am.)
    It is likely that the trial will have a jury selection process, which most likely will occur on
    Tue. 8 April 2008 in our own class.
     Because this is a demand outside of the normal class period, I will cancel a class or two during the semester. We will NOT have class on Thursday Jan. 24.
     If you are unable to serve as a juror at either of these times an alternative assignment will be made.  

Course Outline
     A general outline is presented here. A more detailed outline is posted in the class notes. 

1. Introduction to Law and Economics
2. Legal Institutions
3. Market for Legal Services
4. Coase Theorem
5. 
Regulation and Public Choice 
6. Property Law 
7. Intellectual Property
8.
Tort Law
9. Risk and Uncertainty
10. Contract Law
11. Contract Applications
12. Securities Law
13. Antitrust
14.
Criminal Law