Law and Economics seeks to analyze how legal rules and institutions affect economic outcomes and efficiency.

The Coase Theorem states that if bargaining is possible and there are no transaction costs, the parties involved in an externality can reach an efficient outcome through negotiation.

Pareto Efficiency is a state of resource allocation where it is impossible to improve the welfare of one individual without making someone else worse off.

The public policy doctrine allows courts to consider economic factors and societal interests when making decisions, even if they conflict with established legal rules.

Perverse Incentive refers to a situation where a law or regulation creates incentives that lead individuals or organizations to act in ways that are contrary to the intended purpose of the law.

Rational choice theory assumes that individuals are rational actors who make decisions that maximize their expected utility.

Rent-Seeking refers to activities aimed at obtaining economic benefits through political means, often at the expense of others.

The principle of Just Compensation requires government to provide fair and reasonable compensation to individuals whose property is taken for public use.

Policy Failure refers to the situation where a government policy fails to achieve its intended objectives or has unintended negative consequences.

Judicial Review is the power of courts to determine whether laws and government actions comply with the constitution.

Barriers to Entry are obstacles that make it difficult for new firms to enter a market, often leading to reduced competition.

Negligence is a legal principle that holds individuals responsible for failing to take reasonable care to avoid causing harm to others.

Wealth Redistribution refers to government policies and programs aimed at transferring wealth or resources from one group of individuals or organizations to another.

Equity is a legal doctrine that allows courts to consider fairness and justice in addition to strict legal rules when making decisions.

Environmental Law refers to laws and regulations aimed at protecting the environment and natural resources from pollution, degradation, and unsustainable practices.