Basu summarizes standard, neoclassical law and economics before dissecting its weaknesses. Bringing modern game theory to bear, he develops a “focal point” approach to law and economics, modeling not just the behavior of the citizens who are expected to follow the law but also the functionaries of the state—the bureaucrats, judges, and politicians—who are supposed to enforce the law. He demonstrates the connections between social norms and the law and shows how well-conceived ideas can change and benefit human behavior. The focal point approach is used to analyze real-world problems, from corruption control to leakages in the distribution of subsidies and welfare handouts.
In this original work, drawing on philosophy and game theory, Kaushik Basu offers a provocative alternative to how the relationship between economics and real-world law enforcement should be understood.
It is hoped that, by proposing a fresh way of thinking, The Republic of Beliefs will contribute to creating more effective and just laws, and a fairer society.