Law and economics encompasses analyses of a very diverse nature. In essence, it concerns the application of economic theory, particularly microeconomics and market theory, to analyses of how legal rules arise, what effects they have, and the extent to which they are consistent with general objectives such as efficient use of resources, among others. One example of an explanation of how legal rules arise is the theory that common law develops as a result of the courts’ pursuit of efficient resource allocation. Analyses of the effects of legal rules have a long tradition in economics, but in recent times the field of interest has expanded to include a wide range of rules within contract law, tort law, environmental law, and so forth. The more normative analyses concerning which legal rules must be established in order to achieve efficient resource use and other objectives are closely related to analyses of the effects of legal rules.

Law and economics has undergone particularly strong development in the United States, but activity has also gradually become extensive in other countries. The international significance of law and economics was marked last year by the award of the Nobel Memorial Prize in Economic Sciences to Ronald Coase. Last year’s laureate, Gary Becker, has also made important contributions in this field. In connection with the Nobel anniversary celebrations last year, a law-and-economics symposium on contracts was held, in which several previous laureates participated.

In Norway, research contributions in law and economics have mainly been limited to more traditional economic issues; contributions from legal scholarship have been few. A main purpose of the project is to bring inspiration from foreign research communities to Norway, including to doctoral fellows and others writing dissertations on topics within law and economic