Recent studies of the role of law in distributing accident costs have led to the pessimistic conclusion that because judges lack the information to discover the efficient level of care, efficiency cannot be achieved by common law tort rules. We show that judges have enough information to revise...

A vertically differentiated labor market can be viewed longitudinally as careers or in cross section as hierarchy. The equilibrium structure results from simultaneous choice of careers by individuals and hierarchy by firms. We compare steady states in a model which is simple because there are...