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 cap can improve caretaking.

It has been generally accepted for unilateral-care models that care incentives are not affected by the use of either accurate damages or average damages if injurers lack knowledge of the precise damage level they might cause. This paper shows that in bilateral-care models with heterogeneous...

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 cap can improve caretaking.

In criminal law, when a conflict is solved by plea bargaining, the negotiation is mainly made between the prosecutor and the lawyer. Adopting a complete information framework about his type (selfish or altruistic), this paper compares two lawyer payment systems: flat fees and hourly-wage fees....

Multiple empirical studies find that juries/courts take account of potential harm in the determination of punitive damages. The received view in economic theory, however, is that punitive damages should not depend on potential harm. The purpose of this note is to provide an efficiency rationale...

It has been generally accepted for unilateral-care models that care incentives are not affected by the use of either accurate damages or average damages if injurers lack knowledge of the precise damage level they might cause. This paper shows that in bilateral-care models with heterogeneous...

This study considers the anti-competitive effect of fixed-fee pricing, such as the one seen in a recent antitrust case in Japan. We show that fixed-fee pricing has stronger exclusionary effect than the per-use pricing's exclusionary effect. However, the restriction on usage of fixed-fee pricing...

The domestic brand bias has been one of the most commonly used explanations for automobiles price differences across international borders in the EU. Using a panel dataset comprising of 51 models across 21 EU member states, we take advantage of cross country heterogeneity, and find that,...

The domestic brand bias has been one of the most commonly used explanations for automobiles price differences across international borders in the EU. Using a panel dataset comprising of 51 models across 21 EU member states, we take advantage of cross country heterogeneity, and find that,...

This paper investigates the effects of exclusive territories in the presence of upstream competition. We consider the vertical dealings among two upstream firms and four downstream firms and find that exclusive territories may be more beneficial for consumers and more harmful for producers than...