Regulation and the negligence rule are both designed to obtain compliance with desired standards of behavior, but they … differ in a primary respect: compliance with regulation is ordinarily assessed independently of the occurrence of harm … use of the negligence rule is triggered by harm, the rule enjoys an intrinsic enforcement cost advantage over regulation …

Regulation and the negligence rule are both designed to obtain compliance with desired standards of behavior, but they … differ in a primary respect: compliance with regulation is ordinarily assessed independently of the occurrence of harm … use of the negligence rule is triggered by harm, the rule enjoys an intrinsic enforcement cost advantage over regulation …

In the theory of public enforcement of law the choice of the liability rules is between strict liability and fault …-based liability. In this paper, we study the determinants of compliance when in addition to standard economic incentives wrongdoers … take into account stigmatization costs. In this context, this cost is not simply a transfer of resources. We show that a …