Lawmaking through legislation : an introduction -- Optimal specificity of laws : rules versus standards -- Optimal timing of legal intervention : lawmaking under uncertainty -- Optimal territorial scope of laws : subsidiarity and legal harmonization -- Lawmaking through adjudication : an...

This paper studies markets plagued with asymmetric information on the quality of traded goods. In Akerlof's setting, sellers are better informed than buyers. In contrast, we examine cases where buyers are better informed than sellers. This creates an inverse adverse selection problem: The market...