This Essay briefly reviews where law and economics has been, and then sets out important problems it now faces. My primary theme is that law and economics faces two culture problems: between scholars who self- identify as being in a field - contracts, torts - and who do not use economics in...

This Essay introduces general equilibrium theory (GET) and mechanism design theory (MD) in a general sense (rather than in piece meal applications) to the study of contract law. As a positive matter, this introduction reveals three understudied areas: (i) when the equilibrium contract is...