Economics Institute for Law Professors, July 7-19, 2013

PLEASE NOTE: Copies of the Mankiw and Cooter books will be mailed to you

Agenda--Green Group

Agenda--Gold Group

Economics in Action

Mankiw, Principles of Microeconomics, 6th ed., South-Western Cengage (2011): Ch 1 and 2

Mankiw, Ch 3 &  4

Staples-Office Depot Case

Introduction to Demand

Mankiw, pp 65-72

Introduction to Supply

Mankiw, pp 72-76

Equilibrium and Applications

Mankiw, pp 77-84, 111-121

State of Florida v Medina

Dubner & Levitt, "Flesh Trade"

FTC Press Release on Factors Explaining National Average Gasoline Price Increase During Spring and Summer of 2006, Aug. 30, 2007; Dissenting Statement of Commissioner Liebowitz

Consumer Surplus

Mankiw, pp 135-141

Elasticity of Demand

Mankiw, pp 89-96

Text of the FTC Report to the President on Spring/Summer 2006 Nationwide Gasoline Price Increases

Substitutes and Complements

Mankiw, pp 97-98

Producer Surplus

Mankiw, pp 141-144

Production & Cost

Mankiw, pp 259-274

Alchian, “Costs”, Economic Forces at Work, Liberty Fund (1977), pp 180-201

Transaction Costs

Klein, Asset Specificity and Holdups

Introduction to Games and Strategy

Mankiw, pp 353-362


Baye and Scholten, “Quoting Convention of NASDAQ Dealers Prompts a Justice Department Probe”

Games Involving Timing and the Sequencing of Moves

Monopoly & Perfect Competition

Mankiw, pp 279-295, 299-313

Baye and Scholten, “Kodak Appeals to Court to Terminate 1921 and 1954 Decrees that Restrict Pricing Policies”

Oligolopoly Models

Mankiw, pp 329-362

Klein, “Brand Names”, from The Concise Encyclopedia of Economics


Mankiw, pp 362-368

The Basic Economics of Externalities and the Environment

Free Market Environmentalism: Hats Matter

Mankiw, Chapters 10 and 11

Anderson & Huggins, Property Rights: A Practical Guide to Freedom and Prosperity, Hoover Institution (2009)

Entrepreneurship, Property Rights, and Markets

Asquith, Bees and Barbed Wire for Water, PERC Reports, Vol. 24, No. 4 (Winter 2006)

The Evolition of Property Rights

Scarborough and Lund, Saving Our Streams: Harnessing Water Markets, PERC (2007)

There Ain't No Such Thing as an Externality OR Coase vs. Pigou: Transaction Costs or 'Technical Difficulties'

Anderson, “Donning Coase-coloured Glasses: A Property Rights View of Natural Resource Economics”, The Australian Journal of Agricultural and Resource Economics, 483, 445-462 (2004)

Real Markets vs. Trading Schemes

Leal, Alessi & Baker, Beyond IFQs in Marine Fisheries, PERC (2008)

Crime & Punishment

Posner, An Economic Theory of the Criminal Law,  85 Columbia Law Review 1193 (1985)  

Hylton, "The Theory of Penalties and the Economics of Criminal Law", 1 Review of Law and Economics 176 (vol 2, 2005)       

Optional Readings

Hylton & Lin, Innovation and Optimal Punishment, with Antitrust Applications (2013) 

Agency Costs, Transaction Costs, Theory of the Firm

Masten, excerpts from “Introduction,” Case Studies in Contracting and Organization (1996), pp 3-25

Lake River Corp. v Carborundum. Co.

PSI Energy v Exxon Coal USA

Ronald H. Coase, excerpts from The Nature of the Firm (1937)

Williamson, excerpts from “The Limits of Firms: Incentive and Bureaucratic Features,” Chapter 6 in The Economic Institutions of Capitalism (1985), pp 131-62

Masten, "The Organization of Production: Evidence from the Aerospace Industry," Journal of Law and Economics, 27, October 1984, pp 403-417

Additional references and readings

P. Milgrom and J. Roberts, “Risk Sharing and Incentive Contracts,” Chapter 7 in Economics, Organizations and Management (1992), pp 206-32

Lafontaine and Slade, “Vertical Integration and Firm Boundaries: The Evidence,” Journal of Economic Literature, Vol. XLV (September 2007), pp 629–685

Public Choice Economics

Stearns & Zywicki, Public Choice Concepts and Applications in Law (West, 2009),  Ch 12, and 5

Risk, Injury, Liability, and Insurance

Butler & Drahozal, 2nd ed., Carolina Academic Press (2006):pp 279-294 and 315-350 (okay to skip the cases from the first section 279-294). (pdf emailed)

Hylton, "The Influence of Litigation Costs on Deterrence Under Strict Liability and Under Negligence", 10 International Review of Law and Economics 161 (1990)

Hylton, "The Theory of Tort Doctrine and the Restatement (Third) of Torts", 54 Vanderbilt Law Review 1413 (2001)

Hylton, "Efficiency and Labor Law", 87 Northwestern University Law Review 471 (1992-93)

Experimental Economics

Croson, "Why and How to Experiment: Methodologies from Experimental Economics", University of Illinois Law Review 2002, 921 (2002)

Zeiler, “Cautions on the Use of Economics Experiments in Law”, Journal of Institutional and Theoretical Economics 166(1):178-193 (2010)

Jolls, “Behavioral Law and Economics”, in Behavioral Economics and Its Applications, Peter Diamond and Hannu Vartiainen eds., Princeton University Press (2007)

Sunstein and Thaler, “Libertarian Paternalism is Not an Oxymoron”, University of Chicago Law Review 70(4), 1159-1202 (2003)

Mitchell, “Libertarian Paternalism is an Oxymoron”, Northwestern University Law Review 99(3): 1245-1277 (2005), Part 1 and Part 2

Labor Economics

Butler, Economic Analysis for Lawyers, Carolina Academic Press (1998): pp 477-560 (skip the cases) Part 1 and Part 2

Hylton, "Efficiency and Labor Law," 87 Northwestern University Law Review 471 (1992-1993) 

Legalize Freedom

Cooter & Schafer, Soloman's Knot: How Law Can End the Poverty of Nations, Princeton University Press (2012) (copy mailed), Ch 1, 2, 13, 15. 

Taking, Making, & Creating

Solomon's Knot, Ch 3-5

Cooter & Edlin, The Falcon’s Gyre: Introduction to Law & Growth Economics (forthcoming)                                                             

Growth & Innovation

The Falcon's Gyre, Ch 1, 4-5