Law & Economics Working Papers
Those of us who study contracts tend to forget that most people keep the promises they make. Contract law matters because of the way it affects the behavior of everyone who enters into a contract, not just those who end up in court. In this talk, I want to show that law and economics is useful for exactly this reason. It helps us to identify the effects that legal rules have on behavior.
Douglas G. Baird, "The Law and Economics of Contract Damages" (Coase-Sandor Institute for Law & Economics Working Paper No. 30, 1995).