Law and economics

{
  "id": "MLC-T-LAW-002934",
  "term": "Law and economics",
  "field": "Law",
  "definition": "An approach to legal theory that applies microeconomic principles to analyze and understand legal rules and institutions. This interdisciplinary field evaluates laws based on their economic efficiency, examining how legal rules create incentives and affect individual behavior to produce either efficient or inefficient outcomes. The Coase theorem, which posits that under certain conditions private bargaining can solve externality problems, is a foundational concept in this field of study.",
  "url": "https://mlchart.com/terminology/law/law-and-economics/"
}