Law and economics: A new dimension in market regulation

Abstract

This study examines the application of economic analysis of law in the context of resolving dispute in property rights. It analyses the economic and sociological arguments surrounding intellectual property rights exploitation. To be more specific, it focuses on the patenting of pharmaceutical or biotechnological inventions. This study establishes as a theoretical framework the economic analysis of law with specific reference to transaction cost theory. Prior to that it will discuss the interrelation between economics and law, i.e., on how law may have an impact on economics or how economics has influenced the state in formulating its law. This study will also take into account the theories on property rights and social process of law. © Medwell Journals, 2012.