Many firms conduct 'environmental audits' to test compliance with a complex array of environmental regulations. Commentators suggest, however, that self-auditing is not as common as it should be, because firms fear that what they find will be used against them. This article analyzes...

I study the basic evidentiary problem of how the legal system regulates primary activities on the basis of information supplied by interested and potentially dishonest parties. I then apply the framework to the historical evolution of Civil Procedure. Evidence production is analyzed according to...

This document is the web appendix for the paper, Tax Eclecticism. (Available at SSRN: http://ssrn.com/abstract=1491130.) For easy reference, the document is organized into the same subdivisions (parts, sections, subsections, etc...) as is Tax Eclecticism. Please note that this document is merely...

The dominant view in tax law and policy is that achieving the optimal balance of revenue, efficiency, and equity generally requires basing taxes and transfers solely on income from labor and not also on other potentially taxable attributes such as income from capital. The optimality of...

In an influential paper Polinsky and Che (1991) propose that litigation can be made a more cost effective tool for setting primary activity incentives (e.g., for product safety or promissory performance) by reducing plaintiffs' recovery while simultaneously raising defendants' damages....

Two agents with different priors watch a sequence unfold over time, updating their priors about the future course of the sequence with each new observation. Blackwell and Dubins (1962) show that the agentsi opinions about the future will converge if their priors over the sequence space are...

The United States currently has an effectively exclusive taxing right on the high-tech foreign profits of its multinationals — a right it leaves largely unexercised. This has been unacceptable to US trading partners for some time. On the other hand, recent reform proposals from the OECD are...

We consider an infinitely-repeated Bertrand game, in which prices are perfectly observed and each firm receives a privately-observed, i.i.d. cost shock in each period. We focus on symmetric perfect public equilibria (SPPE), wherein any "punishments" are borne equally by all firms. We identify a...

Almost all Law and Economic analysis evaluates legal rules solely on the basis of the efficiency criterion with no consideration of distributive justice. Recently, the rationale for this long standing practice has been called into question by scholars within the Law and Economics community. In...