Avraham, Ronen; Bustos, Álvaro - In: International Review of Law and Economics 30 (2010) 4, pp. 291-305
This paper focuses on the economic and legal implications of the enactment of caps on non-economic damages on conflicting parties who know that state supreme courts may strike down the caps as unconstitutional within a few years of enactment. We develop a simple screening model where parties...