Special session on Law and Economics Issues: The Interplay between Legal Structures and Market Innovation (LEI)

Scope

The intersection of law and economics is essential in understanding market mechanisms and institutional functions. This track aims to study the substantial role that legal structures play in influencing economic environments. It underscores how legal frameworks serve both as stabilisers and catalysts for market innovation, providing a platform for a fascinating exploration of their dual roles.

The theories of Ronald Coase, as detailed in "The Problem of Social Cost," showcase the importance of property rights and legal institutions in reducing economic frictions. This foundational work sets the stage for a broader discussion on how legal frameworks can facilitate efficient market operations and mitigate negative externalities. Similarly, Milton Friedman's "Capitalism and Freedom" offers a perspective on the minimal role of government, challenging us to rethink the balance of intervention in economic affairs. Building on this, David Friedman argues in "The Machinery of Freedom" that legal systems can evolve through spontaneous order, independent of governmental control. His insights encourage re-evaluating how legal norms and property rights develop through individual interactions within a free market, potentially leading to more adaptive and innovative economic environments.

Transitioning from the Friedmans’ libertarian views, Richard Posner’s "Antitrust Law: An Economic Perspective" provides a critical counterbalance by examining how legal mechanisms can effectively prevent market abuses and promote healthy competition, thus ensuring fair market conditions and consumer protection. This complements Amartya Sen in "The Idea of Justice," which broadens our perspective with a philosophical and economic framework for assessing distributive justice and equity. Sen challenges us to look beyond outcomes to the fairness of the processes that lead to these outcomes, emphasising the importance of equitable access to opportunities and resources.

Further enriching our discussion, Daniel Kahneman’s "Thinking, Fast and Slow" delves into the influence of cognitive science on economic and legal decision-making. Kahneman illustrates how human cognitive biases and heuristics impact decisions made under uncertainty, which is crucial for understanding economic modelling and legal frameworks. This introduces the contributions of Thomas Cottier and Douglass North, who focus on the rule of law in monetary affairs and the impact of institutions on economic performance. Their work sheds light on how economic systems evolve and their dependence on the legal structures within which they operate, providing a comprehensive framework for examining market dynamics on a global scale.

Considering the insights we have just discussed, this track invites empirical, theoretical, and methodological contributions that explore the synergy between law and economics. We aim to provide a comprehensive view of how these elements interact to shape market innovation and governance, influencing everything from small-scale entrepreneurial ventures to large-scale economic policies. By weaving these diverse perspectives, we seek to foster a multidisciplinary dialogue that will yield more profound insights into the complex mechanisms at the heart of economic and legal interdependencies.

We encourage submissions that address historical and contemporary issues and look forward to predictive models and future scenarios in market evolution driven by legal innovations. This track is an opportunity for scholars, practitioners, and policymakers to share progressive research and debate the future directions of economic and legal frameworks in a rapidly changing world.

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Topics

Potential topics of interest include, but are not limited to:

• The impact of property rights on market efficiencies and innovations: How legal definitions of property rights shape economic outcomes and market behaviours.
• Milton Friedman’s influence and limitation on modern economic policy and legal structures: Exploring the enduring impact of Friedman’s theories on contemporary economic and legal reforms.
• Regulatory frameworks and market freedom: Analysing the balance between necessary regulation and market freedom to foster economic growth and innovation.
• Legal certainty and economic development: The role of legal predictability in encouraging investments and stabilising markets.
• Comparative legal systems and their economic impacts: How different legal frameworks across countries influence economic performance and market development.
• The economics of law in antitrust and market fairness: A study on how antitrust laws modelled by economic principles promote fair competition and market health.
• Legal foundations of economic responses to crises: Investigating how legal structures supported or hindered economic resilience during global crises.
• Predictive analytics in legal and economic decision-making: Integrating advanced analytics in shaping legal and economic strategies.
• Amartya Sen’s economic thought on justice and its legal implications: How concepts of justice influence legal frameworks and economic policies.
• The role of institutional economics in shaping legal reforms: Examining how institutional economic theories have been translated into legal changes that impact economic outcomes.
• Interdisciplinary approaches to law and economics: Encouraging papers that blend legal studies with economic theories to offer new insights into market regulation and economic behaviour.
• Technology, law, and economic innovation: Assessing the challenges and opportunities of technological advancements under current legal frameworks.
• Sustainability and law: Economic perspectives on environmental legislation: How environmental laws shape economic practices towards sustainability.
• The intersection of public law and economic policies: Exploring how public law influences economic decisions and the overall economic environment.
• Legal strategies for economic growth: Analysing how strategic legal planning can enhance economic performance and market dynamics.