(Presently full; waitlist available)

This course introduces judges, lawyers, and policy makers to game theory with an emphasis on practical applications. No background in math or economics is needed. Game theory is the study of human interaction. Specifically, game theory is the study of strategic behavior where each party’s action depends on what he or she expects the other parties to do. We will analyze two types of canonical situations that permeate legal regimes and institutions: “dynamic” cases, where each party observes his opponent and accordingly decides on his next move, and “static” cases, where each actor must decide on a course of action without knowing (but guessing) the other party’s strategy. For each category, we will learn how to describe the “game” and how to predict the outcome. We will also learn how changing the rules of the game — that is, how changing the law — can affect the parties’ behaviors. The course will cover concepts and methodologies such as dominance, Nash equilibrium, multiple equilibria, backward induction, adverse selection, and signaling. We will then use these tools to illuminate and analyze different areas of the law, including torts, property, contracts, international trade, antitrust, amnesty programs, civil procedure, and criminal law. We will also evaluate how game theory is useful in better understanding how lawyers develop litigation strategies as well as how it can be used to better understand negotiation and settlement dynamics. Special attention will be given to incentives provided by different legal rules and their welfare effects.

Questions? Contact [email protected] or 703.993.9960