Includes index.

Contents: Introduction: Efficiency and utility maximization -- Efficiency and wealth maximization -- Comparing utility and wealth maximization: The pareto criteria and role of compensation -- Effeciency and equity -- The economic analysis of tort law: Liabilty as an incentive for effiecient behaviour -- The negligence standard -- The cost-benefit approach to liability -- Modern applications of the leaned hand formula -- The negligence standard-continued -- Efficiency of defenses to liability based omn negligence -- Nuisance law -- Trespass and nuisance -- Trespass and nuisance: Transaction costs and impediments to bargaining-continued -- Strict liability -- Efficient defenses to strict liability -- Problems in calculating damages.