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In some cases, the law permits a party that unilaterally provides a benefit to another party to recover the estimated value of this benefit. Despite calls for expanding the set of cases to which such a restitution rule applies, the law commonly applies a mutual consent rule under which a party...
Persistent link: https://www.econbiz.de/10005580777
Behavioral economics has been a growing force in many fields of applied economics, including public economics, labor economics, health economics, and law and economics. This paper describes and assesses the current state of behavioral law and economics. Law and economics had a critical (though...
Persistent link: https://www.econbiz.de/10005720276
Regulation of economic activity is ubiquitous around the world, yet standard theories predict it should be rather uncommon. I argue that the ubiquity of regulation is explained not so much by the failure of markets, or by asymmetric information, as by the failure of courts to solve contract and...
Persistent link: https://www.econbiz.de/10008548773
In many settings, human beings are boundedly rational. A distinctive and insufficiently explored legal response to bounded rationality is to attempt to "debias through law," by steering people in more rational directions. In many important domains, existing legal analyses emphasize the...
Persistent link: https://www.econbiz.de/10005014925
Should the level of liability imposed on an injurer be based on the harm he caused or instead on the gain he obtained … from engaging in the harmful act? The main point of this article is that there is a strong reason to favor liability based … significantly exceeds his gain. The general superiority of harm-based liability is shown to hold under the rules of negligence and …
Persistent link: https://www.econbiz.de/10005714569
In this paper we propose a theory of optimal property rights in a financial contracting setting. Following recent contributions in the property law literature, we emphasize the distinction between contractual rights, that are only enforceable against the parties themselves, and property rights,...
Persistent link: https://www.econbiz.de/10005720609
evidence has been put forth to date bearing on the relationship between medical liability forces on the one hand and medical …--e.g., damage caps--we estimate that the current liability system plays at most a modest role in inducing higher levels of health … care quality. We contend that this limited independent role for medical liability may be a reflection upon the structural …
Persistent link: https://www.econbiz.de/10010951433
Requirements that parties have assets of at least a minimum level in order to participate in an activity are frequently imposed. A principal rationale for minimum asset requirements is considered in this article potential injurers have stronger incentives to prevent harm, or not to engage in...
Persistent link: https://www.econbiz.de/10005248752
Natural catastrophes often have catastrophic risks on insurance companies as well as on the insured. Using a very large dataset on homeowners%u2019 insurance coverage by state, by firm, and by year for the 1984 to 2004 period, this paper documents the positive effect on losses and loss ratios of...
Persistent link: https://www.econbiz.de/10005084788
We investigate the evolution of common law under overruling, a system of precedent change in which appellate courts replace existing legal rules with new ones. We use a legal realist model, in which judges change the law to reflect their own preferences or attitudes, but changing the law is...
Persistent link: https://www.econbiz.de/10005085092