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To both understand and to improve different areas of the law, it is important to recognize what drives policymakers to apply laws to help order relationships between various parties rather than leaving them to their own devices. For instance, securities law often uses increased disclosure as a regulatory tool of choice.'Importantly, securities law does so because of basic assumptions about how markets work; more specifically, this mode of operation for securities law reflects a belief that information can be incorporated into securities prices, making those prices more accurate and more likely to encourage trading at fair price levels. The notion of an" efficient market hypothesis" classically informs an important interaction of economic theory, legal theory, and policy making in this regard. 2 Accordingly, if parties to transactions, including investors, have access to information through improved disclosures

* Associate …