Stigler, George J. (1911–1992)

George Joseph Stigler was born in Renton, a small town near Seattle, Washington. He was one of the greatest economists of the twentieth century, influencing how scholars in every field of social science approached the study of law. One of his many honors, the Alfred Nobel Memorial Prize in Economic Science, was awarded to him in 1982 for his seminal studies of industrial structures, the functioning of markets, and the causes and effects of public regulation. Stigler thought his most important contribution was his theoretical work on the economics of information. Many scholars thought Stigler's most important scientific contributions were in the history of economic thought. Stigler was also a pioneer in the development of public choice economics.

His work exemplified the famous Chicago school of economics, of which he was one of the leading members and contributors. Some of the hallmarks of this school and Stigler's work are the employment of neoclassical [Page 1436]price theory in economic analysis, an emphasis on a free society and free markets, and a methodology that combines economic theory with empirical analysis.

Stigler was influential in setting several methodological standards that have found a permanent place in both legal scholarship and the field of law and economics. He changed the study of law and economics from a foundation based on value judgments about the social effects of laws and their economic consequences toward empiricism. He ended the tendency of economists to accept conclusions about the role of government without empirical verification. His theoretical work on information costs drew attention to the importance of transaction costs, formerly not fully recognized.

A total empiricist, Stigler had a passion for measurement. He believed that results must be testable by means of falsification, and predictions should be verifiable based on empirical evidence. His approach used the framework of microeconomics, which rests on such ideas as scarcity, the valuation of alternatives, and opportunity costs.

Stigler and the Chicago school were interested in a wide range of subjects, making the scope of economics virtually coextensive with that of law. They applied economic reasoning, mostly microeconomics, to subjects usually thought of as belonging to other fields, such as sociology, history, law, and political science. They had faith that proper changes of the law could improve social welfare.

Stigler left his mark on everything he touched, sometimes in highly personal ways. He wrote articles of the highest quality in prose that was both beautiful and prolific. Much of what he wrote was provocative in the sense that his writing forced people to think about what he said. He wrote seventy-three reviews in twenty-four publications. He published more than twenty-five articles in legal and law and economics journals. He was also a gatekeeper in his role as an editor and reviewer. For nineteen years, Stigler was the editor of the Journal of Political Economy.

Another important source of his influence was his close personal relationships with those who were important in shaping modern law and economics. He influenced both his students and colleagues through his ideas and personality. He wrote a popular textbook. He was active at professional meetings. His work embodied the highest standards of intellectual integrity and analytical rigor, based on evidence. His ideas and methods expanded the scope of economic analysis and are now firmly embedded in both legal scholarship and economics.

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