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agenda
i.

Introduction

ii. Simulation
iii. Economics Analysis of Law

Les Avantages

Tort Law
iv. Economics & Law Real World Application

Tuition Hikes

Chinese Bidding War vs. Evolved Countries

v.

Limitations

vi. Conclusion & Discussion Questions

Introduction
http://www.youtube.com/watch?v=CouzZNjuyRM
http://www.youtube.com/watch?v=8-yWKgZv9JY

Simulation
Groups:
1: You have a low income and are willing to spend $1.

2: You have a high income and are willing to spend up to $2,

however (1) you would prefer to use an adoption agency,
and (2) you would like to spend less than $2 if possible. BUT,
you want a baby, regardless of where you get it!

Simulation
Scenario 1:
Child Adoption Act: Any person willing to adopt a child must
do so (1) in compliance with the CCQ, and (2) must go
through a government run non-profit adoption agency.

Simulation
Scenario 2:
No Regulation - Free Market.

Lanalyse conomique du droit: les

avantages
La comprhension des mcanismes conomique est donc cruciale
pour les juristes, les dcideurs politiques, les magistrats et les
avocats

1. Lanalyse conomique construit le droit.

2. Lanalyse conomique prend en compte toute option (juridique)
possible.

Le Droit du Contrat selon lAnalyse conomique

Le Droit de la Responsabilit Civile selon lAnalyse conomique
Application de lanalyse conomique sur le Droit de la Famille

Economic analysis within tort law

Economic Analysis of Law, 5th ed (R. Posner)
The Learned Hand Formula for Determining Liability (R. Posner)
Liability IF B < PL
B = burden (cost) of adequate precautions
P = probability that injury will occur
L = gravity of resulting injury
Bolton v. Stone (1951), Overseas Tankship v. Miller Steamship
(1967)
No-fault systems
Employer liability

Economics Analysis of Law Real World

Application
1. Tuition Hikes
2. Chinese Bidding War

Proposed Tuition hikes

Why did the government want to increase tuition?

D2
D1

Bidding war in china Opposite of N.A.

Limitations of Economics

Limitations of Economics
1. Freedom of Choice
Choosing to work below minimum wage
2. Rationality
Identifying items for consumption, calculating their value and then estimating
potential risks
Persons have things they care about and will do the best they can to achieve
these things
3. Defining Richness
in a culture like our own, which is so heavily dominated by the motive of self
interest [one cannot habitually think of rich as utility] without in fact
universalizing the ordinary rather than the technical meaning
Risk of defending all transactions including the sale of oneself into slavery
4. Short time horizon
Present value of anything that will come into possession very far in the
futureis nearly zero

Alternatives
Traditional economics; not consistent with broader societys
view of itself:
Information Economics, Ecological Economics and Behavioral
Economics; progress?
These fields can reveal areas where new laws are needed and
how they can be most effective

https://www.youtube.com/watch?v=nUdsTizSxSI#t=4m20s

Conclusion & discussion questions

1. What did you think about the adoption simulation? Did you
prefer the free market or regulated market, and why?
2. The basic economics behind the Quebec tuition prices are
undisputed, however, there are many reasons why the
increase did not occur. Community values played a big part
in this. What were your thoughts in regards to the proposed
increase, taking into account the economics and values of
society?
3. As students, what are your thoughts on the bidding war and
shortage of young professionals in China, versus the
competitive landscape which exists in North America? Which
system would you rather be in?