Economics of Contracts in International Disputes [Download a PDF]
In this expanded version of the “Use of Economics in International Arbitrations,” prepared for the Young Arbitration Review (Download a PDF), it is argued that commercial and investment-state disputes are like a 3-legged stool based on facts, law and economics and that focusing only on the first two increases the chances that the stool/case may topple since it will be unbalanced. Many, if not most, disputes revolve around a contract. Analyzing contracts with an economic eye is the foundation of a well-balanced claim or defense. In addition, the use of economics complements and, in some cases, expands the usual legal analysis of liability and helps to inform the tribunal.