Why Law, Economics, and Organization?
48 Pages Posted: 12 Jan 2001
Date Written: December 2000
It being the case that law and economics is a success story, what are the reasons to call upon organization? Three related reasons are advanced here.
First, the orthodox theory of the firm-as-production function is self-limiting and needs, for some purposes, to be joined with the theory of the firm-as-governance structure. Organization theory makes essential contributions to that project. Second, such a move has lessons for public policy analysis. Earlier and ongoing errors in antitrust and regulation are flagged and can be avoided as a consequence. And third, the traditional approach to teaching contract in the law school is reshaped if attention is shifted away from adjudication to focus predominantly on governance - as it should be.
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