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Full-Text Articles in Law
Perfecting Criminal Markets, David Jaros
Perfecting Criminal Markets, David Jaros
All Faculty Scholarship
From illicit drugs to human smuggling to prostitution, legislators may actually be perfecting the very criminal markets they seek to destroy. Criminal laws often create new dangers and new criminal opportunities. Criminalizing drugs creates the opportunity to sell fake drugs. Raising the penalties for illegal immigration increases the risk that smugglers will rely on dangerous methods that can injure or kill their human cargo. Banning prostitution increases the underground spread of sexually transmitted disease. Lawmakers traditionally respond to these “second order” problems in predictable fashion — with a new wave of criminalization that imposes additional penalties on fake drug dealers, …
Outsourcing Regulation: How Insurance Reduces Moral Hazard, Kyle D. Logue, Omri Ben-Shahar
Outsourcing Regulation: How Insurance Reduces Moral Hazard, Kyle D. Logue, Omri Ben-Shahar
Law & Economics Working Papers
This article explores the potential value of insurance as a substitute for government regulation of safety. Successful regulation of behavior requires information in setting standards, licensing conduct, verifying outcomes, and assessing remedies. In some areas, the private insurance sector has technological advantages in collecting and administering the information relevant to setting standards, and could outperform the government in creating incentives for optimal behavior. The paper explores several areas in which regulation and other government-oriented forms of control are replaced by private insurance schemes. The role of the law diminishes to the administration of simple rules of absolute liability or of …
Behavioral Advertising: From One-Sided Chicken To Informational Norms, Richard Warner, Robert Sloan
Behavioral Advertising: From One-Sided Chicken To Informational Norms, Richard Warner, Robert Sloan
All Faculty Scholarship
When you download the free audio recording software from Audacity, you agree that Audacity may collect your information and use it to send you advertising. Billions of such pay-with-data exchanges feed information daily to a massive advertising ecosystem that tailors web site advertising as closely as possible to individual interests. The vast majority want considerably more control over our information. We nonetheless routinely enter pay-with-data exchanges when we visit CNN.com, use Gmail, or visit any of a vast number of other websites. Why? And, what, if anything, should we do about it? We answer both questions by describing pay-with-data exchanges …