Category Archives: Law and Economics

Zhijun Chen, ‘Privacy Costs and Consumer Data Acquisition: An Economic Analysis of Data Privacy Regulation’

ABSTRACT General Data Protection Regulation (GDPR) aims to protect consumer data privacy, however, its adverse effects have been widely documented. We present a new model for the analysis of consumer data acquisition under privacy regulation. We treat both data and analytics as separate strategic variables and consider the heterogeneity of privacy costs across consumers. Using […]

Momberg Uribe and Vidal Olivares, ‘Economic limits to contractual performance: from hardship to the excessive costs of specific performance’

ABSTRACT This article analyses two different limits to specific performance of contracts: hardship and excessive or unreasonable costs, looking into their conditions, scope of application, and effects, with the aim of outlining their corresponding field of application, intending to solve the current confusions on the subject. € Rodrigo Momberg Uribe and Álvaro Vidal Olivares, Economic […]

Jha and Gupta, ‘Climate Change, Emissions Liability, and Multinational Corporations: Notes from Friends of the Earth v Royal Dutch Shell

ABSTRACT The recent decision of the Hague District Court in Friends of the Earth et al v Royal Dutch Shell (‘Friends of the Earth’) marks the first instance where a duty was cast on a corporation to reduce its carbon emissions. This decision is thus significant in the efforts to create a regime of corporate […]

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 […]