This textbook, originally published in 1973 and now in its seventh edition, focuses on the economic analysis of legal rules and institutions, commonly known as "law and economics. " Despite criticism from some, it is considered a significant force in American legal thought and remains influential in jurisprudence. The book stands out for its comprehensive coverage of various legal aspects, including nonmarket behavior regulation and diverse topics like drug addiction, terrorism, and religious practices. It is organized around legal concepts, showcasing how economic analysis can illuminate and improve legal systems. The book aims to help readers understand and reform social practices using economics principles, without assuming prior economic knowledge. While not a standalone economics guide, it covers a wide range of topics beyond traditional economics fields, such as welfare economics, public finance, and industrial organization, at the expense of depth in certain areas. Updated to reflect the rapid growth in economic analysis of law, the seventh edition includes new sections on economic torts, global warming, and terrorism, as well as insights from organizational economics, making it a valuable resource for those interested in the intersection of law and economics.