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The Methododology of Law and Economics in International Law

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image of International Law FORUM du droit international
For more content, see International Community Law Review.

Law and economics (L&E) is the application of economic methods to legal analysis. However, economics itself is not so much a methodology as an epistemology. Economics encompasses a broad range of methods. In this regard, economics is simply another word for rationalism – properly applied, it rejects no method that is rational. In fact, economics is learning to accept the irrational as well, but seeking to apply rational analysis to irrational actions. Economics is a strong social science because it is an open system. The only requirements are rational analysis (but not necessarily the assumption that man is rational) and methodological individualism.


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