Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions — for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices. The incentives created by the legal system are thus a natural subject of study by economists. Moreover, given the importance of law to the welfare of societies, the economic analysis of law merits prominent treatment as a subdiscipline of economics. Our hope is that this two volume Handbook will foster the study of the legal system by economists.*The two volumes form a comprehensive and accessible survey of the current state of the field.*Chapters prepared by leading specialists of the area.*Summarizes received results as well as new developments.

At last, here is an empirical volume that addresses head-on the thorny issue of tort reform in the US. Ongoing policy debates regarding tort reform have led both legal analysts and empirical researchers to reevaluate the civil jury’s role in meting out civil justice. Some reform advocates have called for removing certain types of more complex cases from the jury’s purview; yet much of the policy debate has proceeded in the absence of data on what the effects of such reforms would be. In addressing these issues, this crucial work takes an empirical approach, relying on archival and experimental data. It stands at the vanguard of the debate and provides information relevant to both state and national civil justice systems.