interdisciplinary success of law and economy: economic analysis of law

Economic analysis of law defines as an application of economic theory and economic methods in studies of forming, structure, process and influence of the law and legal institution. Although many comment that it is the question of a new scientific discipline or contemporary intellectual movement, the economic analysis of law reaches even the classics of economic thought Adam Smith and David Hume but the real recognition of the analysis was the publishing of the famous article of Ronald Coase (1960) “Problem of Public Expense” . Here he discusses how the incentives for damage reduction and various negativities come from the allocation of property rights. The aim of this work is to present an economic analysis of law as an interdisciplinary success of two great fields – law and economy, i.e. to present the way on which economy helps to understand law in a new way. Realizing it, the economy uses mathematically precise theories (e.g. price theory, game theory etc.) and empirically firm methods (statistics and econometrically) to analyse the impact of prices, i.e. of sanctions on behaviour. The article shows basic economic analyses of law which especially cite the contract law and balance law.