This is the first systematic book-length account of the law and
economics of the family. It explores the implications of economics
for family law -- divorce, adoption, breach of promise, surrogacy,
prenuptial agreements, custody arrangements -- and its limitations.
Before a family forms, prospective partners engage in a kind of
market activity that involves searching and bargaining, for which
the economic analysis of contract law provides useful insights.
Once a couple marries, the individuals become a family and their
decisions have important consequences for other parties, especially
children. As a result, the state and community have vital interests
in the family.
Although it may be rational to breach a contract, pay damages,
and recontract when a better deal comes along, this practice, if
applied to family relationships, would make family life impossible
-- as would the regular totting up of balances between the
partners. So the book introduces the idea of covenant to consider
the role of love, trust, and fidelity, concepts about which
economic analysis and contract law have little to offer, but
feminist thought has a great deal to add. Although families do
break up, children of divorce are still bound to their parents and
to each other in powerful ways.
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