In this paper we examine the nexus between product markets and the legal system. We examine a model wherein oligopolists produce differentiated products that also have a safety attribute. Consumption of these products may lead to harm (to consumers and/or third parties), lawsuits, and...

Medical malpractice law and tort reform are contentious issues. In this paper we focus on Italy as an example of a civil law jurisdiction. Italian medical malpractice law is essentially judge-made law. However, its effectiveness is likely to be curtailed by excessive delays in litigation....

Drivers have been running an "arms race" on American roads by buying increasingly heavy vehicles such as SUVs, vans and light trucks. An important reason for the popularity of large vehicles is that families view them as providing better protection to their occupants if a crash occurs. But when...

What information should courts utilize when assessing contract damages? Should they award damages that were rationally foreseeable at the ex ante stage (ex ante expected damages)? Or should they award damages at the ex post level, incorporating new information revealed after contracting (ex post...

The University of Chicago occupies a central place in the history of law and economics. To this point, however, scant attention has been given in the literature to how the prospect of an economic analysis of law was received within the Law School at Chicago when the subject was in its infancy....

Despite accounting for a significant fraction of total litigation in Italy, small claims litigation has so far received little attention. Using a Ministry of Justice database that contains information disaggregated by subject matter, the paper provides a thorough description of the time trend...

Calabresi's theory of tort liability (1961) as a risk distribution mechanism established insurance as an objective of tort liability. Calabresi's risk-spreading concept of tort has provided the impetus for much of the subsequent development of tort liability doctrine, including risk-utility...

This paper analyzes the meaning of comparing the economic performance of strict liability and negligence rule in a unilateral standard accident model under Knightian uncertainty. It focuses on the cost expectation of major harm on which the injurers form beliefs. It shows first that, when the...

This paper analyzes the difficulties of comparing the respective effectiveness of two among the most important liability regimes in tort law: rule of negligence and strict liability. Starting from the standard Shavellian unilateral accident scheme, I show that matching up liability regime on...

This paper analyzes the meaning of comparing the economic performance of strict liability and negligence rule in a unilateral standard accident model under Knightian uncertainty. It focuses on the cost expectation of major harm on which the injurers form beliefs. It shows first that, when the...