‘Law and economics’ as well as ‘organizational science’ are well-established disciplines, which are concerned with the explanation of organizational behaviour. However, both disciplines do not collaborate, in order to get more scientific insight in the functioning of organizations. While ‘law and economics’ is mainly applied microeconomics and follows the rational actor model, ‘organizational science’ is fragmented into diverse scientific approaches, thereby relaxing the assumption of rational behaviour. In this essay the differences between both disciplines are dicussed and the possibilities for a productive collaboration are evaluated. In addition, the study includes two applications which demonstrate the added value of a collaboration of the two disciplines: (1) The regulation of energy firms and (2) organizational tort liability.

The Erasmus Law Lectures series has been initiated by the School of Law of Erasmus University Rotterdam and contains brief scientific publications referring to the research programmes of the School of Law.

Target group

Lawyers and Economics

Author's information

Klaus Heine is professor of Law and Economics at the Rotterdam Institute of Law and Economics, Erasmus School of Law, Erasmus University Rotterdam, since 2010. He is also a member of the research group ‘Behavioral Approaches to Contract and Tort’ at the Erasmus School of Law. His main fields of interest are European corporate law, European economic policy (esp. public utilities regulation and state aid control) as well as organizational science and strategic management. He has contributed to numerous academic journals in the fields of law and economics, economic policy and management.