Law and Economics (ECON 405)

2021 Fall
Faculty of Arts and Social Sciences
Mehmet Baç,
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Formal lecture,Interactive lecture,Workshop
Interactive,Discussion based learning,Case Study
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The legal system can be viewed as a set of rules governing social and economic interactions and conduct in a society. This course analyzes whether and how the legal system promotes social welfare and efficiency of economic activity, and offers the student an alternative, economic perspective on law. It applies microeconomic theory to the analysis of several subfields of law, such as property law, contracts, tort law and legal processes. It introduces the student to the economics of law enforcement and to the trade offs the society faces in controlling crime and punishing offenders.


As stated in learning outcomes.


  • - describe and use the welfare concepts and principles underlying the economic approach to law; - apply microeconomic theory (game theory, equilibrium analysis) to selected fields of property, family and criminal law; - apply economic theory to make conditional welfare assessments in real-life legal news, discussing and offering predictions for the outcomes of legal policies;


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 5

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 5

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 3

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 4

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 2

1. Develop knowledge of theories, concepts, and research methods in humanities and social sciences. 3

2. Assess how global, national and regional developments affect society. 5

3. Know how to access and evaluate data from various sources of information. 4

1. Provide constructive analysis of economic phenomena at the national and international level, and interactions between the two. 4

2. Develop an understanding of organizations and institutions in the society as well as their influence on the economy. 5

3. Recognize how incentives shape the behavior of individuals and organizations. 5

4. Identify "economic" problems and propose alternative models and/or design and conduct research to provide viable solutions using theoretical tools and/or quantitative methods. 4

5. Communicate problems and solutions to managerial and policy decision-making units as well as to lay audiences. 3


  Percentage (%)
Final 40
Midterm 30
Quiz 20
Individual Project 10



Bac Mehmet (2015) Lecture Notes on the Economic Approach to Law. Unpublished.