Observation:
Richard A. Posner, The Economic Approach to Law, 53 TEXAS L. Rev. 757 (1975).
 

Abstract:
There is a growing interest among both economists and academic lawyers in using the theories and characteristic empirical methods of economics to increase our understanding of the legal system. The manifestations of this interest include an outpouring of books and articles applying economics to law, the appointment of economists to the faculties of many law schools, and the incorporation of economic theory into the teaching of a variety of otherwise traditional law school courses such as torts, property, and procedure. At the same time, however, that economic approach to law has been captivating some academic lawyers and law students, it has been arousing the deep skepticism and sometimes fierce hostility of many others. Yet the scope, character, and significance of the new approach to law do not appear to be well understood, especially by its detractors but even by some quite sympathetic to it. This article attempts to improve our understanding of the economic approach by analyzing (1) the evolution of the law-economics field; (2) the principal findings that have emerged from the completed research in the field; (3) the agenda of future research; (4) the major criticisms of the economic approach; and (5) its place in the structure of the law school.