© 2018

Economic Analysis of Contract Law

Incomplete Contracts and Asymmetric Information


About this book


This book examines the main issues arising in economic analysis of contract law with special attention given to the incomplete contracts. It discusses both the main features of contract law as they relate to the problem of economic exchange, and how the relevant legal rules and the institutions can be analysed from an economic perspective. Evaluate the welfare impacts, analyses the effects and the desirability of different breach remedies and examines the optimal incentive structure of party-designed liquidated damages under the different dimensions of informational asymmetry. Overall the book aims to contribute to the legal debate over the adoption of the specific breach remedies when the breach victim’s expectation interest is difficult to assess, and to the debate over courts' reluctance to implement large penalties in the event of breach of contracts.


Breach remedies Optimal Contract mechanism design Social welfare theory of contract law economic exchange Principal-Agent paradigm

Authors and affiliations

  1. 1.Department of EconomicsDelhi School of EconomicsDelhiIndia

About the authors

Sugata Bag is Assistant Professor of Economics at the Delhi School of Economics, India. After earning his B.Sc. (Honours) Economics from Calcutta University , Professor Bag completed Masters and Doctoral work in Economics at Jawaharlal Nehru University. His research interest lies in the following domain-  Law and Economics,  Development Economics,  Contract Theory,  Applied Econometrics. 

Bibliographic information

  • Book Title Economic Analysis of Contract Law
  • Book Subtitle Incomplete Contracts and Asymmetric Information
  • Authors Sugata Bag
  • DOI
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2018
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance Economics and Finance (R0)
  • Hardcover ISBN 978-3-319-65267-2
  • Softcover ISBN 978-3-319-87987-1
  • eBook ISBN 978-3-319-65268-9
  • Edition Number 1
  • Number of Pages XVI, 203
  • Number of Illustrations 0 b/w illustrations, 2 illustrations in colour
  • Topics Law and Economics
    Public Economics
    Business Law
  • Buy this book on publisher's site