liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to …. Shareholder liability, mandatory liability insurance and punitive damages are also discussed …

Regulation and the negligence rule are both designed to obtain compliance with desired standards of behavior, but they … differ in a primary respect: compliance with regulation is ordinarily assessed independently of the occurrence of harm … use of the negligence rule is triggered by harm, the rule enjoys an intrinsic enforcement cost advantage over regulation …

Liability and safety regulation are examined as means of controlling risks in a theoretical model of the occurrence of … accidents. According to the model, regulation does not result in appropriate reduction of risk -- due to the regulator's lack of … knowledge about risk -- nor does liability result in that outcome -- because the incentives it creates are diluted by the chance …

Liability in tort and the regulation of safety are considered as means of controlling accident risks using the … instrumentalist, economic method of analysis.Four general determinants of the relative social desirability of liability and regulation … observed to be made between liability and regulation are, when broadly viewed, socially rational: Notably, activities that …

Entrepreneurship requires energy and creativity as well as business acumen. Some factors that contribute to … entrepreneurship may decline with age, but business skills increase with experience in high level positions. Having too many older … workers in society slows entrepreneurship. Older workers do not possess the advantages of youth, but more significant is that …

bailouts are costly because they worsen incentives and thereby reduce welfare. We show that regulation in the form of limits on … undertake bailouts. In terms of the cyclical properties of regulation, we show that regulation should be tightest in aggregate …

firms (entrepreneurship) and the average quality of management (meritocracy). Legal reform also reduces financial … improve meritocracy at the expense of entrepreneurship. As a result, legal reform encounters less political opposition than …

While the focus of mainstream economic analysis of liability rules remains on negligence liability, recently some legal … scholars have argued for the sharing of liability. In this paper, our first objective is contribute to the debate regarding the … desirability of the sharing of liability for the accident loss. To this end, we study the implications of various approaches toward …