In the past few decades, economic analysis of law has become the most influential interdisciplinary perspective in legal theory. While initially applied to market-related issues, it has been extended to practically all spheres of law. This course aims at introducing and critically examining the economic perspective on law. It opens with an introduction to economic methodology and the normative basis of welfare economics. It then discusses basic notions of economic analysis, including economic efficiency, the perfectly competitive market, market failures, and basic concepts of game theory. The course will demonstrate the fruitfulness (and limitations) of economic analysis of various legal issues. Examples will be drawn from different legal spheres, including contract, property, constitutional, and criminal law (with special emphasis on contracts). We shall also touch upon the important contribution of economic analysis to debates over distributive justice and paternalism, and discuss the latest contribution of cognitive psychology insights to economic analysis of law (the so-called behavioral law and economics). The course assumes no previous knowledge of economics.