Category Archives: Law and Economics

William Clayton, ‘High-End Bargaining Problems’

ABSTRACT Traditional law and economics theory places great confidence in the ability of contracting parties to bargain for optimal contracts, and the law reflects this confidence in many important ways. In this Article, I question the wisdom of a formalistic faith in bargaining by uncovering flaws in the bargaining process at the high end of […]

Schwarcz and Leonhardt, ‘Lawmaking Without Law: How Overreliance on Economics Fails Financial Regulation’

ABSTRACT This article examines a fundamental failure of process in lawmaking: the overreliance of lawmakers on economists and economic scholarship when designing and implementing financial regulation, to the virtual exclusion of lawyers and legal scholarship. This overreliance leads to regulation that often is based on theoretical models and assumptions that are poorly informed by experience […]

Ho-Po Crystal Wong, ‘Can’t Wait Any Longer? The Effects of Shorter Waiting Periods on Divorce and Remarriage’

ABSTRACT Since the 1990s, many US states have enacted or lengthened the waiting periods required for parties to divorce with the goal of strengthening marriage or at least discouraging divorce. I use the length of time by which some states have shortened their waiting periods to analyze how such waiting periods affect remarriage rates. I […]

Peter Lee, ‘Patent Law’s Externality Asymmetry’

ABSTRACT Technologies such as social media, autonomous vehicles, and ‘big data’ analytics generate enormous benefits for society, but they also create substantial harms. Social media networks spread misinformation, autonomous vehicles threaten driving jobs, and predictive policing based on big data can lead to unreasonable searches and seizures. One of the most significant ways that technology […]

Morrison and Quirk, ‘An Australian Conundrum: Genomic Technology, Data, and the COVIDSafe App’

ABSTRACT This paper examines the difficulties that have arisen in Australia in the use of its contact-tracing app. We examine the privacy implications around the use of the app, the wider economic imperative, and the balancing of those concerns against the health threat of the COVID-19 pandemic. We posit that default options are superior in […]

Chang and Hubbard, ‘New Empirical Tests for Classic Litigation Selection Models: Evidence from a Low Settlement Environment’

ABSTRACT Law and economics theorists have long advanced theories of litigation and settlement, including the canonical Landes-Posner-Gould (LPG) and Priest and Klein (PK) models. Famously, PK predict that, as settlement rates rise, plaintiff win rates approach 50%. So far, though, empirical testing of these models has been hampered by two major limitations: first, these models […]

Meirav Furth, ‘The Distributive Impacts of Nudnik-based Activism’

ABSTRACT In Theory of the Nudnik: The Future of Consumer Activism and What We Can Do to Stop It, Professors Yonathan Arbel and Roy Shapira propose that nudnik customers should be lauded for acting as engines of market discipline. According to Arbel and Shapira, nudnik consumers typically generate significant social benefits. Through their complaints, nudniks […]

Guerra, Parisi and Pi, ‘Liability for Robots I: Legal Challenges’

ABSTRACT In robot torts, robots carry out activities that are partially controlled by a human operator. Several legal and economic scholars across the world have argued for the need to rethink legal remedies as we apply them to robot torts. Yet to date, there exists no general formulation of liability in case of robot accidents, […]

Daniel Pi, ‘The Limits of Behavioral Economics in Tort Law’

ABSTRACT Skeptics of rational choice theory have long predicted that behavioral economics would radically transform the legislation, adjudication, and analysis of law. Using tort law as an exemplar, this Article maps out the narrow set of conditions where substantive law can be modified to accommodate irrational decision-makers. Specifically, this Article demonstrates that if injurers are […]

Mariacristina Zarro, ‘Online Unfair Commercial Practices: A European Overview’

ABSTRACT The supranational economic paradigm considers the weak user a tool for the realization of the market: through his choices (contracts) he rewards companies that contribute to offering products at the best quality-price ratio, thus playing a central and propulsive role in the European common market. To do this, however, he needs correct information and […]