Rechtseconomie

Rechtseconomie, in English commonly referred to as law and economics, is an interdisciplinary field that analyzes legal rules and institutions using economic theory and empirical methods. Its central question is how legal norms affect incentives, behavior, and overall welfare, and how economic efficiency can be enhanced through legal design.

Researchers in rechtseconomie apply concepts such as incentives, transaction costs, property rights, and externalities to areas including property, contract, tort, regulation, and competition law. Methodologies range from theoretical models and cost–benefit analysis to empirical work using econometrics and experimental data, as well as game theory to study strategic interaction under rules and enforcement.

Rechtseconomie emerged prominently in the mid-20th century with scholars such as Ronald Coase and Richard Posner, and has since become a standard part of many law schools and policy institutes. It distinguishes between positive analysis (how rules affect behavior) and normative analysis (which rules maximize social welfare), while acknowledging trade-offs between efficiency, equity, and distributional goals.

Applications include antitrust enforcement, taxation and public finance, environmental regulation, contract design, and property rights reform. The field informs judicial decisions, legislative drafting, and regulatory impact assessment, though it also faces critiques regarding abstract assumptions, measurement challenges, and debates about the primacy of efficiency versus fairness.