engleski

Application of the game theory to law: selected examples

The law and economics, or the economic analysis of law, has been increasingly popular intellectual movement that units two great social fields – law and economics. Economic analysis of law as a branch of legal scholarship is defined as the application of (micro)economic theory and econometric methods to examine the formation, structure, process and impact of law and legal institutions'. This paper focuses on game theory as a branch of applied mathematics that has been increasingly used in economics since 1970s and consequently in law and economics. Game theory's method is to simplify a situation by describing it in terms of players, actions, payoffs, after which the players' strategic interactions can be described. Whether used explicitly or implicitly, this is a highly useful approach of law. Namely, well-known games such as the prisoner's dilemma, the battle of the sexes, beer-quiche, and the Rubinstein bargaining game can illuminate many different kinds of legal problems. The purpose of this paper is to present the underlying logic of the game theory and law and to help improve the communication between economic and legal scholars since economic and mathematical tools can be intellectually very useful for law scholars and law practitioneers.

game theory, law and economics, prisonners' dilemma

Knjiga se referira u Thomson ISI, EBSCO Publishing, EconPapers, Socionet