Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices....

What effects do laws have? Do individuals drive more cautiously, clear ice from sidewalks more diligently, and commit fewer crimes because of the threat of legal sanctions? Do corporations pollute less, market safer products, and obey contracts to avoid suit? And given the effects of laws, which are socially best?...

Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions - for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices....