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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 … examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general …
Persistent link: https://www.econbiz.de/10012471807
A central result in the economic theory of liability is that, if an injurer's liability equals the victim's loss, then …
Persistent link: https://www.econbiz.de/10012476895
This note reexamines the theory of optimal public enforcement when litigation costs are incurred if the defendant is …
Persistent link: https://www.econbiz.de/10012476955
One of the principal results in the economic theory of liability is that, assuming litigation is costless, the rule of …
Persistent link: https://www.econbiz.de/10012477242
Thi spaper is concerned with the risk-allocation effects of alternative types of contracts used to set the price of a good tobe delivered in the future. Under a fixed price contract, the price is specified in advance. Under a spot price contract, the price is the price prevailing in the spot...
Persistent link: https://www.econbiz.de/10012477260
This paper compares alternative liability rules for allocating losses from defective products when consumers under- estimate these losses and producers may have some market power. If producers do not have any market power, the rule of strict liability .leads to both the first-best accident...
Persistent link: https://www.econbiz.de/10012478170
This paper examines the use of fines and imprisonment to deter individuals from engaging in harmful activities. These sanctions are analyzed separately as well as together, first for identical risk-neutral individuals and then for two groups of risk-neutral individuals who differ by wealth. When...
Persistent link: https://www.econbiz.de/10012478175
This paper examines how the optimal Pigouvian tax should be adjusted to reflect administrative costs. Several cases are examined, depending on whether the administrative costs are fixed per firm taxed or are a function of the amount of tax collected, and on whether such costs are borne by the...
Persistent link: https://www.econbiz.de/10012478373
This paper examines the sharing of risk under three different remedies for breach of contract. The risk considered arises from the possibility that, after a seller and buyer have entered into an agreement for the exchange of some (not generally available) good, a third party who values the good...
Persistent link: https://www.econbiz.de/10012478401
In nuisance-type cases, legal commentators generally recommend -- and the courts seem to increasingly use -- the award of damages rather than the granting of an injunction of the harmed party. This essay compares the economic consequences of injunctive and damage remedies under a variety of...
Persistent link: https://www.econbiz.de/10012478681