We introduce a model that describes the evolution of compliance with corporate governance practices regulated by comply or explain (‘CorE’) standards. We show that a practice’s compliance level evolves as a diffusion process, which converges to the practice efficacy level. The model allows...

We document the effects that three different types of events: i) corporate scandals ii) hard legal reforms, and iii) soft legal reforms, have had on the Chilean market for corporate directors between 2008 and 2019. Like the effects generated by the sequence Enron-Worldcom-SOX, we find that the...

The Chief Justice of the United States Supreme Court authors many of the most important opinions coming out of the Court. The prestige of authoring an important policy decision, and the value that such an opinion adds to the legacy of the Chief Justice’s Court, plays an important and strategic...

We examine the revelation of preferences of justices whose true ideologies are not known at the moment of entering the Court but gradually become apparent through their judicial decisions. In the context of a two-period President-Senate-Court game – generalizing Moraski and Shipan (1999) –...

An essential facility produces 'access', an essential input used by a competitive downstream industry. The access charge is regulated. The essential facility can vertically integrate into the downstream segment and sabotage rivals increasing their costs.We systematically study the vertical...

The formation of coalitions in a court has attracted the attention of political scientists and legal economists. The question we address in this article is the extent to which coalition stability impacts the law. We consider a model where a court has two judicial coalitions, majority and...

This paper focuses on the economic and legal implications of the enactment of caps on non-economic damages on conflicting parties who know that state supreme courts may strike down the caps as unconstitutional within a few years of enactment. We develop a simple screening model where parties...