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Economic Analysis of Law - JURD7335
 Science students

Faculty: Faculty of Law
School:  Faculty of Law
Campus: Kensington Campus
Career: Postgraduate
Units of Credit: 6
EFTSL: 0.12500 (more info)
Indicative Contact Hours per Week: 4
Enrolment Requirements:
Prerequisite: LAWS1001 and LAWS1011 and Corequisite: LAWS2311; Prerequisite: JURD7101 and JURD7111 and Corequisite: JURD7211
Excluded: LAWS3335
Fee Band: 3 (more info)
Further Information: See Class Timetable


This course provides an introduction to economic analysis of law and policy. For instance, the law against insider trading prohibits trading based on material, non-public information. In this course we examine what exactly is meant by “materiality”; we examine methods to determine whether information is public and to what degree it is reflected in the financial markets; and we analyse how this affects the legal liability of a trader in possession of the information.

Recommended Prior Knowledge (if any)

No prerequisites.

Main Topics

  • Economic theory of contracts, including bargaining theory
  • Economic analysis of tort liability
  • Economic analysis of property law, including intellectual property and economics of information
  • Law and economics of mergers and acquisitions
  • Event studies in emperical analysis of corporate law, including financial frauds and market manipulation


Class participation 10%
Periodic assignments 20%
Final Exam 70%

Course Texts


A. Mitchell Polinsky,An Introduction to Law and Economics, 3rd ed, 2003, Aspen Publishing
David D. Friedman,Law's Order, 2000, Princeton U. Press
Robert Cooter and Thomas Ulen,Lalw & Economics,5th ed, 2007, Pearson Australia
Richard A. Posner, Economic Analysis of Law, 7th ed, 2007, Aspen Publishing


Refer to the course outline which will be provided by the lecturer at the beginning of the relevant semester.

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© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.