In this lecture, Dr. Michael Krauss introduces students to the economic analysis of law and public choice. He discusses the voting paradox, in which the results of a democratic vote do not necessarily represent the popular will. He also explains the four ways of allocating resources: altruism, anarchy, markets, and the government. Dr. Krauss applies Mancur Olson's economic analysis of the supply and demand of legislation to the formation of lobbyists and interest groups. He also explores Ronald H. Coase's ideas on social costs that effectively challenged the prevailing view that social and private costs differ.