Should managers be liable for ill-conceived business decisions? One answer is given by U.S. courts, which almost never hold managers liable for their mistakes. In this paper, we address the question in a theoretical model of delegated decision making. We find that courts should indeed be lenient...

Zusammenfassung Der europäische Richtliniengeber hat eine für Banken entworfene Vergütungsregulierung mehr oder minder textgleich auf die Investmentbranche übertragen. Der Beitrag geht der Frage nach, welchen sinnvollen Zielen eine derartige Regulierung bei Fondsverwaltern dienen kann. Dazu...

The proposed Act to Prevent Discrimination in Private Law has turned out a more troublesome project than expected. While some saw the proposal as long overdue, others were appalled by what they perceived as a wide-ranging assault on the freedom of contract. Critics went so far as to link it to a...

In this comment on Professors Gilson's and Schwartz' paper “Constraints on private benefits of control: Ex ante control mechanisms versus ex post transaction review,” I consider their proposal to permit contractual arrangements over private benefits of control (PBC) obtained by controlling...

Should managers be liable for ill-conceived business decisions? One answer is given by U.S. courts, which almost never hold managers liable for their mistakes. In this paper, we address the question in a theoretical model of delegated decision making. We find that courts should indeed be lenient...