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We conduct a field experiment to examine whether the deterrent effect of law enforcement can be strengthened by making law enforcement activities more salient. Our focus is on illegal disposal of household garbage in residential areas. At a random subset of 56 locations in a city in the...
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Limited liability may result in inefficient accident prevention, because a relevant portion of the expected harm is … externalized on victims. This paper shows that under some restrictive conditions further limiting liability by means of a liability …
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Basing-point pricing is known to have been abused by geographically dispersed firms in order to eliminate competition on transportation costs. This paper develops a topographic test for collusive basing-point pricing. The method uses transaction data (prices, quantities) and customer project...
Persistent link: https://www.econbiz.de/10011377553
This paper develops a model in which individuals gain social status among their peers for being 'tough' by committing violent acts. We show that a high penalty for moderately violent acts (zero-tolerance) may yield a double dividend in that it reduces both moderate and extreme violence. The...
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). Finally, we offer considerations on the optimal design of liability rules. …
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This paper develops a model of the birth and death of cartels in the presence of enforcement activities by a Competition Authority (CA). We distinguish three sets of interventions: (a) detecting, prosecuting and penalizing cartels; (b) actions that aim to stop cartel activity in the short-term,...
Persistent link: https://www.econbiz.de/10011431514