"Efficient Breach" and Economic Analysis of International Investment Law

The field of economic analysis of law may be traced to works of Bentham and even the Italian Beccaria , but finds its current structure with seminal works by Coase , Becker , Calabresi , Posner and, more recently, Cooter & Ulen and Shavell.The law&economics revolution has, so far, very rarely touched international law (and, a fortiori, international investment law), perhaps because analysis has focused only on the domestic (and mainly US) context or maybe because of a lack of knowledge of technical international legal mechanisms by his founding fathers. The authors argue that the concept of "efficient breach" is not adequate for an international investment law context.