Chen, Ying; Eraslan, Hülya - 2018
investigation. A ruling establishes a precedent, which may be costly to violate in the future. We compare the DM's incentive to … acquire information, the evolution of standards and the social welfare under two institutions: nonbinding precedent and … binding precedent. Under nonbinding precedent, the DM is not required to follow previous rulings, but under binding precedent …