Law Commons^™

The Economics Of Limited Liability: An Empirical Study Of New York Law Firms, Scott Baker, Kimberly D. Krawiec

ExpressO

Since the rapid rise in organizational forms for business associations, academics and practitioners have sought to explain the choice of form rationale. Each form contains its own set of default rules that inevitably get factored into this decision, including the extent to which each individual firm owner will be held personally liable for the collective debts and obligations of the firm. The significance of the differences in these default rules continues to be debated. Many commentators have advanced theories, most notably those based on unlimited liability, profit-sharing, and illiquidity, asserting that the partnership form provides efficiency benefits that outweigh any …

Further Evidence That Legalized Abortion Lowered Crime: A Reply To Joyce, John Donohue, Steven D. Levitt

John Donohue

No abstract provided.

Agenda: Introduction To The Legal Foundation Of Federal Land Management, University Of Colorado Boulder. Natural Resources Law Center

Introduction to the Legal Foundation of Federal Land Management (December 1-3)

Materials prepared for the course held at the National Center for Atmospheric Research in Boulder, Colorado on December 1-3, 2004

Course instructors: Charles Wilkinson; Sarah Krakoff; Kathryn Mutz; Ann Morgan; Maggie Fox

Contents:

Introduction -- Agenda -- Summaries of laws -- Case studies. Travel management; Oil and gas development; Timber/fuels reduction -- How to influence agency decision makers -- Natural resource related legal and policy resources for the non-legal professional

Introduction To The Legal Foundation Of Federal Land Management, University Of Colorado Boulder. Natural Resources Law Center

Introduction to the Legal Foundation of Federal Land Management (December 1-3)

1 v. (various pagings) : ill., maps ; 28 cm

Materials prepared for the course held at the National Center for Atmospheric Research in Boulder, Colorado on December 1-3, 2004

Course instructors: Charles Wilkinson; Sarah Krakoff; Kathryn Mutz; Ann Morgan; Maggie Fox

Contents:

Introduction -- Agenda -- Summaries of laws -- Case studies. Travel management; Oil and gas development; Timber/fuels reduction -- How to influence agency decision makers -- Natural resource related legal and policy resources for the non-legal professional

The Many Legal Institutions That Support Contractual Commitment, Gillian K. Hadfield

Gillian K Hadfield

One of the fundamental contributions of transaction cost theory and institutional economics has been to focus attention on opening the "black box" of contract enforcement, drawing attention to the institutions required to achieve effective and low-cost contract enforcement. The idea that the effectiveness of contract law is critical to the growth of economic activity is widespread in the literature on development and transition economies. Recent studies attempting to document toe relative strength of contract enforcement in different settings (La Porta, et al., 19982; Djankov, et al., 2003), however, have focused on relatively abstract notions of "courts" and "legal systems" and …

Putting Humpty Dumpty Back Together: Pricing In Anticommons Property Arrangements, Ben Depoorter, Sven Vanneste

George Mason University School of Law Working Papers Series

Recently, a new theory has drawn considerable attention in the literature on common property. A number of scholars have pointed to the danger of excessive propertization in the context of what are termed "anticommons" property regimes. Although this theory has found its way into numerous legal and economic applications, the empirical and cognitive foundations of the theory of fragmentation remain unexplored. Based on experimental data, this Article conducts an investigation into the social and personal processes involved in the anticommons.

The results confirm the theoretical proposition that anticommons deadweight losses increase with the degree of complementarity between individual parts and …

The Unsolvable Dilemma Of A Paretian Policymaker, Giuseppe Dari-Mattiacci, Nuno Garoupa

George Mason University School of Law Working Papers Series

In this paper, we argue that social decisionmaking is subject to a fundamental conflict between consistency and completeness. We show that a consistent welfarist method of policy assessment, that is, one that never violates the Pareto principle, may be incomplete in the sense of being incapable of providing a solution to important social welfare problems.

Does Soft Dollar Brokerage Benefit Portfolio Investors: Agency Problem Or Solution?, Stephen M. Horan, D. Bruce Johnsen

George Mason University School of Law Working Papers Series

With soft dollar brokerage, institutional portfolio managers pay brokers “premium” commission rates in exchange for rebates they use to buy third-party research. One hypothesis views this practice as a reflection of the agency problem in delegated portfolio management; another views it as a contractual solution to the agency problem that aligns the incentives of investors, managers, and brokers where direct monitoring mechanisms are inadequate. Using a database of institutional money managers, we find that premium commission payments are positively related to risk-adjusted performance, suggesting that soft dollar brokerage is a solution to agency problems. Moreover, premium commissions are positively related …

A Culturally Correct Proposal To Privatize The British Columbia Salmon Fishery, D. Bruce Johnsen

George Mason University School of Law Working Papers Series

Canada now faces two looming policy crises that have come to a head in British Columbia. The first is long-term depletion of the Pacific salmon fishery by mobile commercial ocean fishermen racing to intercept salmon under the rule of capture. The second results from Canadian Supreme Court case law recognizing and affirming “the existing aboriginal and treaty rights of the aboriginal peoples of Canada” under Section 35(1) of the Constitution Act, 1982. This essay shows that the economics of property rights provides a joint solution to these crises that would promote the Canadian commonwealth by way of a privatization auction …

The Coordinated Effects Of Mergers In Differentiated Products Market, Kai-Uwe Kuhn

Law & Economics Working Papers Archive: 2003-2009

No abstract provided.

Guns, Crime, And The Impact Of State Right-To-Carry Laws, John Donohue

John Donohue

No abstract provided.

Strict Liability For Gatekeepers: A Reply To Professor Coffee, Frank Partnoy

University of San Diego Law and Economics Research Paper Series

This article responds to a proposal by Professor John C. Coffee, Jr. for a modified form of strict liability for gatekeepers. Professor Coffee’s proposal would convert gatekeepers into insurers, but cap their insurance obligations based on a multiple of the highest annual revenues the gatekeepers recently had received from their wrongdoing clients. My proposal, advanced in 2001, would allow gatekeepers to contract for a percentage of issuer damages, after settlement or judgment, subject to a legislatively-imposed floor. This article compares the proposals and concludes that a contractual system based on a percentage of the issuer’s liability would be preferable to …

Encumbered Shares, Shaun Martin, Frank Partnoy

University of San Diego Law and Economics Research Paper Series

The fundamental assumptions in the law and economics literature about shareholder voting and the one-share/one-vote rule are flawed. The classic view is that share ownership is necessary and sufficient to create voting rights and that such rights should be directly proportional to share ownership. We demonstrate that this assumption is unfounded, both for shares that are “economically encumbered” (held by shareholders who are not pure residual claimants; e.g., a shareholder who owns one share and is also short one or more shares) as well as shares that are “legally encumbered” (held or associated with more than one shareholder; e.g., shares …

Theory And Practice Of Competition Advocacy At The Ftc, James C. Cooper, Paul A. Pautler, Todd J. Zywicki

George Mason University School of Law Working Papers Series

This article was prepared as part of a recent symposium celebrating the Ninetieth Anniversary of the founding of the Federal Trade Commission. In addition, fall 2004 marks the Thirtieth Anniversary of a pivotal moment in the establishment of the modern advocacy program at the FTC, Chairman Lewis Engman’s speech on the economic burden that inefficient transportation regulation policies were imposing on the American economy. Although the FTC has been involved in advocacy activities since its founding, Engman’s speech symbolized a new aggressiveness on the part of the FTC in using its expertise to work with other governmental actors at all …

Does The Tax Law Discriminate Against The Majority Of American Children: The Downside Of Our Progressive Rate Structure And Unbalanced Incentives For Higher Education?, Lester B. Snyder

University of San Diego Law and Economics Research Paper Series

Our graduate income tax structure provides an incentive to shift income to lower-bracket family members. However, some parents have much more latitude to shift income to their children than do others. Income derived from services and private business-by far the majority of American income-is less favored than income derived from publicly traded securities. The rationale given for this discrimination is that parents in services or private business, as opposed to those in securities, do not actually part with control of their property. This article explores these tax broader (yet subtle) tax benefits and their impact on the majority of children …

Expert Witness Says Disney Had Cause To Fire President, John Donohue

John Donohue

The Walt Disney Company should have fired Michael S. Ovitz because of his "substantial and repeated dishonesty," a legal specialist testified yesterday in support of the shareholders who are suing Disney's directors over Mr. Ovitz's $140 million severance package.

Ovitz Performance In Disney Role Is Faulted At Trial, John Donohue

John Donohue

Former Walt Disney Co. President Michael Ovitz's job performance and spending habits came under attack during testimony in a Delaware court case, as an expert witness said Disney's directors could have fired Mr. Ovitz for cause, rather than giving him the no‐fault termination he received. John J. Donohue, a Yale University law professor and witness for a group of Disney shareholders, testified that his review of California law, of Mr. Ovitz's employment contract and of depositions in the case showed that Disney's board had the right not to grant Mr. Ovitz a no‐ fault termination, which resulted in an estimated …

Rents, Dissipation, And Lost Treasures With N Parties, Giuseppe Dari-Mattiacci, Eric Langlais, Francesco Parisi

George Mason University School of Law Working Papers Series

The rent-seeking literature is unanimous on the fact that, in a rent-seeking context, the rent dissipation increases with the number of potential participants. In this paper we analyze the participants' choice to enter the game and their levels of efforts. We show that the usual claim - that the total dissipation approaches the entire value of the rent - applies only when participants are relatively weak. In the presence of strong competitors, the total dissipation actually decreases, since participation in the game is less frequent. We also consider the impact of competitors' exit option, distinguishing between redistributive rent-seeking and productive …

Disney Had Good Reason To Fire Ovitz, John Donohue

John Donohue

GEORGETOWN, Del., Oct 21 (Reuters) - Walt Disney Co. (DIS.N) should have fired Michael Ovitz rather than paying him $140 million in severance, a legal expert testified on Thursday in support of shareholders suing the Disney board. Shareholders are demanding that the severance and interest - a sum that could total about $200 million - be returned to the company, claiming that the board was asleep at the wheel when they approved the deal and that Ovitz failed miserably in his 14 months as president. In the second day of a trial that is being closely watched in corporate boardrooms, …

Obesity And Advertising Policy, Todd J. Zywicki, Debra Holt, Maureen Ohlhausen

George Mason University School of Law Working Papers Series

It is clear that Americans are getting fatter, both adults and children. This development has led some to call for a ban on food advertising directed at children. There are numerous practical and constitutional difficulties with such a policy. This article poses a more fundamental question - even if feasible, would restricting food advertising do anything to reduce obesity or even slow its trends? The article also considers whether the social costs of banning advertising could outweigh the social benefits of such an action.

This article provides a review of the literature on the fundamental causes of the American obesity …

The Effects Of Malpractice Tort Reform On Defensive Medicine, Katherine D. Hennesy, Heather M. O'Neill

Business and Economics Faculty Publications

Positive defensive medicine occurs when physicians order additional tests or procedures primarily to avoid malpractice liability. This paper shows the degree of defensive medicine occurring across states is related to the malpractice environment in the states. As the environment changes due to malpractice tort reform, defensive medicine practices also change. This paper shows the existence of positive defensive medicine and how it adds to total health care expenditures for head trauma victims in 23 states in 2000. Moreover, given different malpractice environments across states, we witness variations in defensive medicine practices leading to differences in health care expenditures.

Exclusion Or Efficient Pricing: The "Big Deal" Bundling Of Academic Journals, Aaron S. Edlin, Daniel L. Rubinfeld

Daniel L. Rubinfeld

Prices of academic journals have climbed enormously in the past two decades. This article explains the substantial barriers to entry that established journals enjoy. It points out that the Big Deal bundling that the large commercial publishers have adopted in the past few years creates a substantial additional strategic barrier to entry. We consider whether these bundling offers violate the antitrust laws and conclude that they may.

Exclusion Or Efficient Pricing: The "Big Deal" Bundling Of Academic Journals, Aaron S. Edlin, Daniel L. Rubinfeld

Aaron Edlin

Prices of academic journals have climbed enormously in the past two decades. This article explains the substantial barriers to entry that established journals enjoy. It points out that the Big Deal bundling that the large commercial publishers have adopted in the past few years creates a substantial additional strategic barrier to entry. We consider whether these bundling offers violate the antitrust laws and conclude that they may.

Sex, Shame, And The Law: An Economic Perspective On Megan's Law, Doron Teichman

Law & Economics Working Papers Archive: 2003-2009

This Article focuses on the question, how should policymakers aiming to minimize the cost of sanctioning utilize legal and nonlegal sanctions when designing a system of criminal sanctions. After presenting the general economic case for the use of nonlegal sanctions the article turns to present a model of shaming, which unlike existing models, incorporates the endogenous effects of legal and nonlegal sanctions. This model demonstrates that tailoring an efficient regime that combines legal and nonlegal sanctions might be more difficult than previously perceived by law and economics scholars. A specific case study presented in this article is of the current …

Income, Work And Freedom, Philip L. Harvey

ExpressO

The ability of public policies to secure the economic and social rights recognized in the Universal Declaration of Human Rights is proposed as a trumping supplement to the utility-maximization criterion of neo-classical welfare economics. Two progressive proposals for ending poverty and promoting personal development and freedom are then compared using this assessment criterion. The first proposal is that society guarantee everyone an unconditional basic income (BI) without imposing work requirements in exchange for the guarantee. The second proposal is that society use direct job creation to provide employment assurance (EA) for anyone who is unable to find decent work in …

Economic Theories Of Bundling And Their Policy Implications In Abuse Cases: An Assessment In Light Of The Mircrosoft Case, Kai-Uwe Kuhn

Law & Economics Working Papers Archive: 2003-2009

No abstract provided.

Banking The Poor: Policies To Bring Low-Income Americans Into The Financial Mainstream, Michael S. Barr

Law & Economics Working Papers Archive: 2003-2009

Low-income households in the United States often lack access to bank accounts and face high costs for conducting basic financial transactions through check cashers and other alternative financial service providers. These families find it more difficult to save and plan financially for the future. Living paycheck to paycheck leaves them vulnerable to medical or job emergencies that may endanger their financial stability, and lack of longer-term savings undermines their ability to improve skills, purchase a home, or send their children to college. High-cost financial services and inadequate access to bank accounts may undermine widely-shared societal goals of reducing poverty, moving …

Instructors' Manual On Achieving Health And Safety In The Building And Repair Of Ships And Boats, William Murphy, James Nicholson

Bureau of Labor Education

This instructors' manual contains step by step approaches that instructors can use when teaching from the project book entitled: Achieving Health and Safety in the Building and Repair of Ships and Boats. The chapters in this manual match those contained in the book.

Achieving Health And Safety In The Building And Repair Of Ships And Boats, William Murphy, James Nicholson, Valerie Carter, Jane Crouch

Bureau of Labor Education

In 2002 there were over 5,500 fatalities reported by industries in the United States. A total of 4.7 million injuries and illnesses were reported in private sector workplaces in 2002, resulting in a rate of 5.3 cases per 100 equivalent fulltime workers. The Liberty Mutual 2002 Workplace Safety Index estimates that direct costs for occupational injuries in 1999 rose to $40.1 billion, with indirect costs reaching over $200 billion. Shipyard work is very hazardous, with an injury-illness incidence rate of 16.6 that is more than twice that of construction and general industry.4 While boatyard work is more diverse, and usually …

Delivering Legality On The Internet: Developing Principles For The Private Provision Of Commercial Law, Gillian K. Hadfield

Gillian K Hadfield

No abstract provided.