Economic analysis of international law

Abstract

While law and economics methodology has been widely implemented in areas of domestic law for several decades, economic analysis was a latecomer to the international law arena. This chapter draws together divergent economics literature and examines the progress of legal-economic scholarship in international law. In particular, it analyzes the rational choice approach and the emergence of behavioral international law and economics. After an outline of the conceptual and analytical overview of the field, the chapter considers the economic analysis of international law making. It then turns to examining compliance with international law and, specifically, customary international law, including a discussion on efficient breach. The final section delineates some recent developments, limitations of the law and economics approach, and possible directions for future research.