In case of a merger or an acquisition, a tort liability that arises from the seller's conduct is often imposed on the buyer through the doctrine of successor liability. If the buyer has as much information about the potential liability as the seller, the first best is achieved: all gains from...

We study a model of civil dispute with delegation in which a plaintiff's lawyer works on a contingent fee basis but a defendant's lawyer on an hourly fee basis. We first derive the conditions under which delegation to the lawyers brings both the plaintiff and defendant more payoffs, compared to...

We analyze the impact of liability risks for malpractice on the optimal reimbursement schemes for hospitals. In our model, the hospital decides upon two unobservable efforts, a cost reduction effort and a quality improvement effort. We assume that the total effort is positive even without...