liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to …. Shareholder liability, mandatory liability insurance and punitive damages are also discussed …

In an earlier work, we analyzed how the legal rules governing contractual liability affect the transfer of information … between the parties to the contract. In particular, we showed how limitations on contractual liability might lead high … liability are and are not socially desirable. In an article forthcoming in the Stanford Law Review, Barry Adler develops a …

Congress may soon restrict joint and several liability for cleanup of contaminated sites under Superfund. We explore … costs. Recent theoretical research by Kornhauser and Revesz finds that joint and several liability may either encourage or … Superfund litigation. We find that joint and several liability does not discourage settlements and may even encourage them. Our …

injunctions. We investigate how damages under a liability rule and the opportunity for injunctions under a property rule can … affect the incentives to develop research tools. We show that the prevailing legal doctrine of damages under liability rule … rule with injunctions or by a liability rule under the doctrine of unjust enrichment …

This article surveys the theory of the public enforcement of law -- the use of public agents (inspectors, tax auditors …, police, prosecutors) to detect and to sanction violators of legal rules. We first present the basic elements of the theory …, focusing on the probability of imposition of sanctions, the magnitude and form of sanctions, and the rule of liability. We then …

A central result in the economic theory of liability is that, if an injurer's liability equals the victim's loss, then … either the rule of strict liability or the rule of negligence can induce the injurer to behave properly. However, for this … and, g fortiori, before any harm has occurred. This paper reevaluates the rules of strict liability and negligence when …

This note reexamines the theory of optimal public enforcement when litigation costs are incurred if the defendant is …

One of the principal results in the economic theory of liability is that, assuming litigation is costless, the rule of … strict liability with compensatory damages leads the injurer to choose the socially appropriate level of care. This paper … reexamines this result when litigation is costly. It is shown that strict liability with compensatory damages generally leads to …

Liability and safety regulation are examined as means of controlling risks in a theoretical model of the occurrence of … knowledge about risk -- nor does liability result in that outcome -- because the incentives it creates are diluted by the chance … that parties would not be sued for harm done or would not be able to pay fully for it. Thus, either liability could turn …