Category Archives: Law and Economics
Hiroyuki Seshimo, ‘Mandatory Residual Tort Liability Insurance and Compensation Reserves: A Proposal for Solving the Judgment-Proof Problem’
ABSTRACT This research considers compensation reserves and mandatory residual tort liability insurance to solve the judgment-proof problem. This insurance policy covers only the remaining tort liability after company liquidation. This research examines a situation in which companies can raise funds through equity financing to increase their compensation reserves instead of enhancing this mandatory insurance coverage. […]
Andrew Woodhouse, ‘The de-politicisation of decarbonisation through climate rent: a Marxist critique of the EU emissions trading system’
ABSTRACT The European Union (EU) Emissions Trading System (ETS) is the cornerstone of the EU’s attempt to decarbonise economic production in Europe. This paper questions the power and class relations that are built into the EU’s choice to address the climate crisis through the legal construction of emissions trading. Drawing on Marxist theory, the paper […]
Kathryn Judge, ‘The Changing Architecture of Trust’
ABSTRACT Trust has always been vital to the healthy functioning of financial markets and the stability of the financial institutions. The mix of public and private institutions that undergird this trust, however, can vary. Often these forces are ignored or taken for granted until something goes wrong. With a marked turn toward deregulation taking hold […]
Grenadier and Grenadier, ‘Third-Party Litigation Financing Under a Veil of Secrecy: The Equilibrium Consequences of Disclosure Requirements’
ABSTRACT Third-party litigation finance is an increasingly popular practice in commercial litigation. Despite calls for mandated disclosure, litigation funders are mostly anonymous to defendants, judges and juries. We first present an equilibrium model of litigation, with endogenous settlement and trial, where plaintiff financing is private information. Defendants use the plaintiff’s response to settlement offers to […]
Matthew Bodie, ‘Liability, Property, and Inalienability Rules in Employee Data Regulation’
ABSTRACT The regulation of employee data presents a complex legal challenge at the intersection of privacy, property, and liability rules. Current frameworks primarily rely on liability rules, where employers are permitted to collect and use employee data as long as they provide compensation for any resulting harm. However, this approach fails to account for the […]
Parchomovsky and Baharad, ‘Patent Monopsonies’
ABSTRACT Conventional wisdom perceives patent protection as a necessary evil. Patent protection, the argument goes, raises the prices of patented products and processes, thus restricting access to innovation. But without it, not enough innovation will be produced. Hence, generations of scholars have sought ways to curb the market power of patentees via various legal interventions, […]
Francesco Parisi, ‘Bargaining for Remedies: An Efficiency-Revelation Mechanism’
ABSTRACT This paper presents an incentivized experiment investigating whether parties place different intrinsic values on the two primary forms of contractual protection-damages and specific performance. In the first part of the experiment, participants are offered two contract options that are identical except for the remedy available in the event of breach. We elicit their valuations-specifically, […]
Luigi Franzoni, ‘Efficient Liability Law with Costly Insurance’
ABSTRACT This paper examines the impact of insurance on the liability system, building on the realistic assumption that parties are risk-averse and that private insurance is costly. These factors increase the value of precaution for the parties involved. Under a negligence rule, risk aversion and the high cost of insurance justify raising the standard of […]
Alison Morantz, ‘Rejecting the Grand Bargain: What Happens When Large Companies Opt Out of Workers’ Compensation?’
ABSTRACT Texas is the only state where employers can, and frequently do, opt out of workers’ compensation. Focusing on multistate firms that swapped workers’ compensation for private insurance (‘nonsubscribers’), I compare outcomes across the two regimes. I find that nonsubscription induced a roughly 35% increase in minor claims, partly offset by a 28% decline in […]
Nelson Guimaraes Barros, ‘The Absence of the Nobel Prize in Law: Between Scientific Recognition and the Civilizational Relevance of the Legal Order’
ABSTRACT This essay investigates the reasons why law remains excluded from the Nobel Prize system, arguing that this absence does not stem from a technical limitation of the legal discipline, but rather from a restrictive conception of science that marginalizes forms of normative and institutional rationality. Drawing on the critique developed by thinkers such as […]