Category Archives: Law and Economics

Andrew Hayashi, ‘The Law and Economics of Animus’

ABSTRACT People sometimes want to harm other people. This truism points to a blind spot in law and economics scholarship, which generally assumes that people are indifferent to the effects of their actions on other people. Diverse areas of the law, such as hate-crime legislation and constitutional equal protection doctrine, reside in this blind spot […]

Chakraborty, Mukherjee, Saha and Shukla, ‘Caste, Courts and Business’

ABSTRACT We study the role of formal institutions of contract enforcement in facilitating investments in small and medium firms (MSME). In a framework where established entrepreneurs can enforce contracts informally using their network ties and hierarchical advantage, we argue that an efficient formal judiciary helps entrepreneurs without any ties to informal business networks, disproportionately more. […]

Brandon Schaufele, ‘Chilling Effects from Anti-SLAPP Laws’

ABSTRACT Anti-SLAPP legislation has proliferated across the US and Canada. SLAPPs are ‘strategic lawsuits against public participation’, private claims whose objective is to chill opposition by limiting parties’ ability to participate in public debate. SLAPPs involve a complementarity between a private harm, typically the tort of defamation, and an extra-judicial project, often a real estate […]

Robert Rhee, ‘Probabilistic Causation in the Loss of Chance Doctrine: A Comment on Efficiency and Error Mitigation’

ABSTRACT The loss of chance doctrine in tort law solves a recurring problem in the context of medical malpractice in which severely ill patients are misdiagnosed or mistreated. Absent a theory permitting probabilistic recovery, traditional factual causation inquiry always results in the finding of no causation in individual cases. But we know as a matter […]

Lera, Mahari and Strub, ‘The Economics of Litigation Finance’

ABSTRACT We study the economics of litigation with a particular focus on litigation finance. Based on an extensive data set covering civil lawsuits reported by US Federal Courts since 1977, we first present a set of stylized empirical facts about lawsuits at the trial phase. Grounded in these insights, we build a base model for […]

Tsui and Wong, ‘Duty to Rescue? No Duty to Rescue? Shall you Pay for it?’

ABSTRACT This article is divided into three parts: The first part discusses the principle of the ordinary law, inter alia, under the law of tort, in particular, why it is not appropriate to impose on persons without presumed duties to be responsible for death of certain individuals under some instances. The second part discusses why […]

Mill and Stäbler, ‘Spite in Litigation’

ABSTRACT The goal of this paper is to study how litigation and settlement behavior is affected by subjects motivated by spiteful preferences – a potentially common driver for litigation behavior. We focus on litigation and settlement behavior both under the American and the English fee-shifting rule. To evaluate our theoretical predictions, we conduct an online […]

Anton Kwaijtaal, ‘Quantitative Liability Law’

ABSTRACT In the manuscript I derive a fundamental quantitative model of normal legal behavior in liability law and describe how deviating from this behavior results in liability in an abstract world where unlawful damage should be minimalized. I start with a logical model in a deterministic world and thereafter switch to a probabilistic world and […]

Andreas Engert, ‘Equality Between Efficiency and Distribution – A Law-and-Economics Reconceptualization of a Principle of Justice’

ABSTRACT This chapter sheds light on the principle of equality from the perspective of normative (law and) economics as a theory of justice. In this reconceptualization, equality appears in two forms: On the one hand, specific equal-treatment rules can be derived from the efficiency goal. Law and economics thus offers a novel justification of such […]

Sarath Sanga, ‘The Origins of the Market for Corporate Law’

ABSTRACT I study the origins of the market for corporate charters and the emergence of Delaware as the leader of this market. Specifically, I assemble new data on 19th- and 20th-century corporations to evaluate two widely held beliefs: (1) the US Supreme Court is responsible for enabling a national market for corporate charters in the […]