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Full-Text Articles in Law
A Financial Economic Theory Of Punitive Damages, Robert J. Rhee
A Financial Economic Theory Of Punitive Damages, Robert J. Rhee
Michigan Law Review
This Article provides a financial economic theory of punitive damages. The core problem, as the Supreme Court acknowledged in Exxon Shipping Co. v. Baker, is not the systemic amount of punitive damages in the tort system; rather it is the risk of outlier outcomes. Low frequency, high severity awards are unpredictable, cause financial distress, and beget social cost. By focusing only on offsetting escaped liability, the standard law and economics theory fails to account for the core problem of variance. This Article provides a risk arbitrage analysis of the relationship between variance, litigation valuation, and optimal deterrence. Starting with settlement …
Explaining Tort Law: The Economic Theory Of Landes And Posner, Peter C. Carstensen
Explaining Tort Law: The Economic Theory Of Landes And Posner, Peter C. Carstensen
Michigan Law Review
A Review of The Economic Structure of Tort Law by William M. Landes and Richard A. Posner
The Economics Of Justice, Michigan Law Review
The Economics Of Justice, Michigan Law Review
Michigan Law Review
A Review of The Economics of Justice by Richard A. Posner