Category Archives: Law and Economics

Enrico Rossi, ‘Reconsidering the Dual Nature of Property Rights: Personal Property and Capital in the Law and Economics of Property Rights’

ABSTRACT In the last two decades, a renewed interest in property rights have challenged the accepted interpretation of property rights as ‘bundle of rights’ over the use of things and have rehabilitated the old classical interpretation of property rights as exclusive (absolute) dominium over things rooted in the right to exclude. This paper provides a […]

Metcalf, Satterthwaite, Dillbary and Stoddard, ‘Is a Fine Still a Price? Replication as Robustness in Empirical Legal Studies’

ABSTRACT Can fines lead to more of an undesirable behavior, rather than deterring it? This was the surprising finding in Uri Gneezy and Aldo Rustichini, ‘A Fine is a Price’ published in the Journal of Legal Studies in 2000. In this field experiment at Israeli daycares, the introduction of fines caused an increase in late […]

Choi and Spier, ‘The Economics of Class Action Waivers’

ABSTRACT Many firms require consumers, employees, and suppliers to sign class action waivers as a condition of doing business with the firm, and three recent US Supreme Court cases, Concepcion, Italian Colors, and Epic Systems, have endorsed companies’ ability to block class actions through mandatory individual arbitration clauses. Are class action waivers serving the interests […]

Dillbary, Metcalf and Stoddard, ‘Incentivized Torts: An Empirical Analysis’

ABSTRACT Courts and scholars assume that group causation theories (eg, concerted action) deter wrongdoers. This article empirically tests, and rejects, this assumption, using a series of incentivized laboratory experiments. Contrary to common belief, data from over 200 subjects shows that group liability can encourage tortious behavior and incentivize individuals to act with as many tortfeasors […]

‘Crowdfunding and the Protection of Trust – Fundamentals and Comparative Law Considerations’

“In my latest research contribution, I analyse the regulatory framework of crowdfunding in Switzerland, the UK and the USA. After describing crowdfunding and its potential as an alternative means to finance private consumption and small businesses, the article turns to economic analysis of the underlying issues of a generic unregulated crowdfunding market. It concludes that, […]

‘The Market as a Legal Construct’: special number of Law and Contemporary Problems

The Law of the Market (Hanoch Dagan, Avihay Dorfman, Roy Kreitner, and Daniel Markovits) The Key to Value: The Debate over Commensurability in Neoclassical and Credit Approaches to Money (Christine Desan) Employer Organization and the Law: American Exceptionalism in Comparative Perspective (Kathleen Thelen) Why Did Belgium Pay Leopold’s Bonds? (Kim Oosterlinck, Joseph Blocher, and Mitu […]

Ewan McGaughey, ‘A Human is not a Resource’

INTRODUCTION … But a human is not a resource, and this is why many people working in HR are deeply ambivalent about their profession’s core assumptions. This makes it even more important to isolate the assumptions, and assess the effects. The effects are seen in (1) the regulation of part-time, fixed-term, agency and other casual […]

Barnett and Sichelman, ‘The Case for Noncompetes’

ABSTRACT Scholars and other commentators widely assert that enforcement of contractual and other limitations on labor mobility deters innovation. Based on this view, federal and state legislators have taken, and continue to consider, actions to limit the enforcement of covenants not-to-compete in employment agreements. These actions would discard the centuries-old reasonableness standard that governs the […]

‘A Crisis of Faith in (the Efficiency of) Expectation Damages’

Theresa Arnold, Amanda Dixon, Madison Whalen, and Mitu Gulati, The Myth of Optimal Expectation Damages, Marquette Law Review (forthcoming), available at SSRN. Everyone knows that the expectation measure is the standard, default measure of damages for a bargain contract, and for the last few decades most scholars have regarded the expectation measure as backed by […]

Jacob Eisler, ‘The Limits and Promise of Instrumental Legal Analysis’

RADICAL MARKETS: UPROOTING CAPITALISM AND DEMOCRACY FOR A JUST SOCIETY by POSNER, ERIC A AND WEYL, GLEN (Princeton, NJ: Princeton University Press, 2018, 368 pp, £25.00); PRICING LIVES: GUIDEPOSTS FOR A SAFER SOCIETY by VISCUSI, W KIP (Princeton, NJ: Princeton University Press, 2018, 296 pp, £30.00). Should law be understood as serving external social goals, […]