Law and economics has become a central organizing philosophy in U.S. legal education. And with the Fourth Edition of their best-selling text, Cooter and Ulen continue to provide students with a clear method for applying economic analysis to the study of legal rules and institutions. Following an overview of economic analysis tools for law students and legal analysis tools for economics students, uniquely paired chapters offer a combination of clear theoretical analysis supported by practical application. Economic theories in four core areas of the law are used to explain and analyze topics, illustrating how microeconomic theory can be used to increase understanding of the law and improve public policy. The Fourth Edition has been thoroughly revised, improving the clarity and flow in exposition, as well as updating the data and examples.