We develop a model of deviance by incorporating the labeling effect into rational choice theory. In our model, we provide an explanation of the process through which a deviant is stigmatized and explore theoretically the relationship between the experience of having deviated and the incentive...

This paper presents a model of quantity regulation aimed at mitigating externalities from over-use of a commons: for example, restrictions on use of automobiles, fisheries, computer networks and electronic stock quotation systems with high-frequency traders. The model provides a...

We consider the signaling role of attorney fees which have been usually assumed as exogenous in literature. We show that there exists an equilibrium in which the informed plaintiff uses both the attorney fee and the settlement demand as signals for his damage amount. If attorney service is not...