Law Commons^™

Deepwater Drilling: Law, Policy, And Economics Of Firm Organization And Safety, Mark A. Cohen

Vanderbilt Law Review

Nathan Richardson 64 Vand. L. Rev. 1853 (2011) Although the causes of the Deepwater Horizon spill are not yet conclusively identified, significant attention has focused on the safety-related policies and practices-often referred to as the safety culture-of BP and other firms involved in drilling the well. This Article defines and characterizes the economic and policy forces that affect safety culture and identifies reasons why those forces may or may not be adequate or effective from the public's perspective. Two potential justifications for policy intervention are that: (1) not all of the social costs of a spill may be internalized by …

Economics, Politics, And The International Principles For Sound Compensation Practices: An Analysis Of Executive Pay At European Banks, Guido Ferrarini, Maria C. Ungureanu

Vanderbilt Law Review

In this Article, we submit that the compensation structures at banks before the financial crisis were not necessarily flawed and that recent reforms in this area largely reflect already existing best practices. In Part I we review recent empirical studies on corporate governance and executive pay at banks and suggest that there is no strong support for regulating bankers' compensation structures. We also argue that detailed regulation of incentives would subtract essential decisionmaking powers from boards of directors and make compensation structures too rigid.

In Part II we note that political support for regulating bankers' pay has been strong and …

Tendencies Versus Boundaries: Levels Of Generality In Behavioral Law And Economics, Gregory Mitchell

Vanderbilt Law Review

When evidence on the truth or falsity of a proposition is ambiguous and open to multiple interpretations, psychologists warn about "biased assimilation" of the evidence to support pre-existing theories, beliefs, and attitudes. Therefore, when a skeptic about the public policy implications of psychological research examines the complex mix of evidence on human rationality, he may find much to support his skepticism about the use of psychology to reform the law. Likewise, an optimist about the public policy contributions of psychology may find within this same body of evidence much to bolster his optimistic view that psychological research can be used …

Chicago Man, K-T Man, And The Future Of Behavioral Law And Economics, Robert A. Prentice

Vanderbilt Law Review

Most law is aimed at shaping human behavior, encouraging that which is good for society and discouraging that which is bad.' Nonetheless, for most of the history of our legal system, laws were passed, cases were decided, and academics pontificated about the law based on nothing more than common sense assumptions about how people make decisions. A quarter century or more ago, the law and economics movement replaced these common sense assumptions with a well-considered and expressly stated assumption-that man is a rational maximizer of his expected utilities. Based on this premise, law and economics has dominated interdisciplinary thought in …

Analyze This: A Law And Economics Agenda For The Patent System, Rebecca S. Eisenberg

Vanderbilt Law Review

Patent law as a field of academic study has benefited enormously from the attention of economists. Indeed, law professors are relative newcomers to the academic patent field, trickling in behind the economists in small but growing numbers as patent law evolves from an arcane, practitioner-taught specialty to a less marginal role in law school curriculums.' Yet considering the prominence of economists in academic discourse about the patent system, they have had relatively little impact on patent law and policy. One reason for this disparity between the role of economists in the academy and in policy arenas may be the indeterminacy …

The Growing Pains Of Behavioral Law And Economics, Thomas S. Ulen

Vanderbilt Law Review

We are at the beginning of behavioral law and economics. We now see only dimly the outlines of the elaborate theory of decision making that is to come. We are like the independent scholars who examined the various parts of a very large animal and then tried to put together their reports to describe that animal; we each have bits and pieces of the elephant but no clear image of the entire beast. But we should not despair. We must remember that this behavioralist discipline is, as scholarly developments go, young. Indeed, the conventional law and economics model, to which …

Can There Be A Behavioral Law And Economics?, Samuel Issacharoff

Vanderbilt Law Review

The emergence of the modern law and economics analysis generally is dated to the early 1960s with the publication of seminal work by Ronald Coase' and subsequently by Guido Calabresi and Douglas Melamed. These articles laid the foundation for the relation between legal rules, wealth maximization, and transaction costs, which provided the pivotal application of economic analysis to legal problems. However, the current sweep of law and economics would have been inconceivable without Gary Becker's insight into the application of neoclassical comparisons of marginal utility to the stuff of everyday life. Becker's analysis of routine decision making in terms of …

Remedies And The Psychology Of Ownership, Jeffrey J. Rachlinski, Forest Jourden

Vanderbilt Law Review

It is surprising that there are cases like Boomer v. Atlantic Cement Co.I The plaintiffs in Boomer were eight homeowners seeking injunctive relief against the dust and noise produced by a neighboring cement plant, the Atlantic Cement Company. The trial court declared Atlantic Cement a nuisance, but refused to enjoin the plant's operations. Instead, the court awarded monetary damages to the plaintiffs for the loss in value to their property attributable to the defendant's activities. The dissatisfied plaintiffs appealed, but ultimately New York's highest court declared that they were not entitled to injunctive relief. That the plaintiffs sued the plant …

Behavioral Economics, The Economic Analysis Of Bankruptcy Law And The Pricing Of Credit, Robert K. Rasmussen

Vanderbilt Law Review

Bankruptcy has been a fertile ground for the economic analysis of law. A significant portion of bankruptcy scholarship during the past fifteen years applies the basic assumptions of standard economic theory to the problems caused by financial distress. This scholarship begins with the premise that people make choices in a rational manner in order to maximize their individual utility. It applies this axiom to questions ranging from when do individuals file for bankruptcy to how bankruptcy laws affect firms' investment decisions. As it has in most other areas of law (especially private law), law and economics has both reshaped our …

Putting Rational Actors In Their Place: Economics And Phenomenology, Edward L. Rubin

Vanderbilt Law Review

The model of human behavior that is used in microeconomics is both normative and descriptive. As a normative model, it is an historical successor to the medieval concept of grace and the Renaissance concept of virtue. As a descriptive model, it is a theory of human psychology. Economists tend to deemphasize this point be- cause psychology is a notoriously "soft" science, and economists aspire to the "hard" sciences' precision. Nonetheless, any model that states the way human beings behave under specified circumstances is necessarily a theory of the way the human mind functions, and thus be- longs in the category …

Economics, Feminism, And The Reinvention Of Alimony: A Reply To Ira Ellman, June Carbone

Vanderbilt Law Review

Divorce reform and gender roles are inextricably linked. When Lenore Weitzman chronicled the devastating consequences of divorce for most women, she described a legal system that, in an effort to be gender neutral in a formal sense, made no allowance for the domestic role women continue to perform. Herma Hill Kay, in reviewing Weitzman-inspired proposals to expand the scope of the financial awards made at divorce, nonetheless warned against encouraging "future couples entering marriage to make choices that will be economically disabling for women, thereby perpetuating their traditional financial dependence upon men and contributing to their inequality with men at …

Economic Analysis And Antitrust Law, Thomas D. Morgan

Vanderbilt Law Review

Economic Analysis and Antitrust Law by Terry Calvani and John Siegfried

Professors Calvani and Siegfried have collected, in less than four hundred pages, an extraordinarily useful set of articles providing general information about antitrust economic issues. Some of the articles are classics in the field, while some challenge the existing wisdom. One might have wished for somewhat greater coverage of issues involving vertical relationships, and indeed a separate volume might even have been appropriate on those subjects. The choices made, however, were basically sound, and the editing is both intelligent and useful. This collection could be profitably assigned and used …

The Literature Of Sales Taxation, Denzel C. Cline

Vanderbilt Law Review

This paper is limited to literature on general sales taxes and will not include taxes imposed upon the sale of particular commodities, such as gasoline or tobacco. It is also limited to publications by American authors in the last-quarter century. Even so, it is impossible in an article of this size to mention all of the contributions to the literature."

References for legal articles on sales and use taxes and related topics, such as interstate commerce, which are published in the law journals are found in the Index of Legal Periodicals. Another excellent bibliographical source is the Tax Institute Bookshelf, …