Law and Economics Commons^™

Economics, Behavioral Biology, And Law, Erin O'Hara O'Connor

Scholarly Publications

This article compares the relevance to law of two unexpectedly similar fields: economics and behavioral biology. It first examines the assumptions, core concepts, methodological tenets, and emphases of the two fields. It then compares the interdisciplinary fields of law and economics, on one hand, with law and behavioral biology, on the other—highlighting not only important similarities but also important differences. The article subsequently explores ways that biological perspectives on human behavior may, among other things, improve economic models and the behavioral insights they generate. The article concludes that although there are important differences between the two fields, the overlaps between …

The Limits Of Formal Economics In Tort Law: The Puzzle Of Negligence, Shawn J. Bayern

Scholarly Publications

No abstract provided.

Repeat Offenders: If They Learn, We Punish Them More Severely, Murat C. Mungan

Scholarly Publications

Many legal systems are designed to punish repeat offenders more severely than first time offenders. However, existing economic literature generally offers either mixed or qualified results regarding optimal punishment of repeat offenders. This paper analyzes optimal punishment schemes in a two period model, where the social planner announces possibly-different sanctions for offenders based on their detection history. When offenders learn how to evade the detection mechanism employed by the government, escalating punishments can be optimal. The contributions of this paper can be listed as follows: First, it identifies and formalizes a source which may produce a marginal effect in the …

Managerial Entrenchment And Shareholder Wealth Revisited: Theory And Evidence From A Recessionary Market, Jay B. Kesten

Scholarly Publications

Does managerial entrenchment create or destroy shareholder value? This Article presents both theory and evidence that the answer to this question is not monolithic, but rather depends on factors that vary greatly with the macroeconomic climate, such as firm profitability, takeover frequency, and valuation of takeover premiums. The mainstream view, both of academics and market participants, is that entrenchment reduces accountability to shareholders and amplifies agency costs, thus decreasing shareholder wealth. Two influential studies (Bebchuk, Cohen & Ferrell (2009) and Gompers, Ishii & Metrick (2003)) present empirical evidence consistent with this conclusion, finding statistically significant negative correlations between entrenchment and …

Is Cap-And-Trade Fair To The Poor? Short-Sighted Households And The Timing Of Consumption Taxes, Manuel A. Utset, Brian Galle

Scholarly Publications

No abstract provided.

The Politics And Psychology Of Gasoline Taxes: An Empirical Study, Shi-Ling Hsu

Scholarly Publications

Economists are beginning to form a consensus that a carbon tax is the most effective and cost-effective way to reduce global greenhouse gas emissions. The insight of economists and other policy analysts is that, in the greenhouse gas context, the design of cap-and-trade programs creates so many opportunities for rent-seeking that they may not be very cost-effective, and may not reduce greenhouse gas emissions at all. Carbon tax proposals are appealing because they are so simple and sensible that rent-seeking would have to be very audacious to succeed.

Carbon tax proposals, however, have divided economists from almost everybody else. In …

Rational Ignorance, Rational Closed-Mindedness, And Modern Economic Formalism In Contract Law, Shawn J. Bayern

Scholarly Publications

This article considers the relevance of several kinds of post-offense events for the justice of punishment under a fair-play account of retributivism. If the justice of punishment depends on something like an offender-centered tally of benefits and burdens, it may be difficult to explain why offenders should be punished by a criminal justice system in situations where they have been punished privately or have lost the relevant benefits they may have received from their offenses.

My fault is past. But, O, what form of prayer
Can serve my turn? 'Forgive me my foul murder?
That cannot be; since I am …

Saving Lives Through Administrative Law And Economics: A Response, Shi-Ling Hsu

Scholarly Publications

No abstract provided.

Telling Differences: Observational Equivalence, Externalities, And Wrongful Convictions, Manuel A. Utset

Scholarly Publications

We must begin with the mistake and transform it into what is true. That is, we must uncover the sources of error; otherwise hearing what is true won’t help us. It cannot penetrate when something is taking its place. To convince someone of what is true, it is not enough to state it; we must find the road from error to truth.

Ludwig Wittgenstein, Remarks on Frazier's Golden Bough 1e (Rush Rhees ed., A.C. Miles trans., 1979 (emphasis in original).

Hyperbolic Criminals And Repeated Time-Inconsistent Misconduct, Manuel A. Utset

Scholarly Publications

No abstract provided.

The Genuine Article: A Subversive Economic Perspective On The Law's Procreationist Vision Of Marriage, Courtney Megan Cahill

Scholarly Publications

No abstract provided.

Model Of Time-Inconsistent Misconduct: The Case Of Lawyer Misconduct, Manuel A. Utset

Scholarly Publications

No abstract provided.

Time-Inconsistent Management & The Sarbanes-Oxley Act, Manuel A. Utset

Scholarly Publications

No abstract provided.

Economics, Public Choice, And The Perennial Conflict Of Laws, Erin O'Hara O'Connor

Scholarly Publications

No abstract provided.

A Game-Theoretic Approach To Regulatory Negotiation And A Framework For Empirical Analysis, Shi-Ling Hsu

Scholarly Publications

For at least two decades, federal agencies have departed from their traditional role as top-down regulators, and have engaged regulated parties in negotiations regarding matters that were previously either handed down as edict or resolved in quasi-judicial agency proceedings. It is no accident that the increase in agency use of more conciliatory negotiation-oriented strategies coincides with a steady increase in skepticism regarding the effectiveness of regulation at the federal level and demands for less federal control and more state and local control. In this setting, federal agencies have become more inclusive and less adversarial towards regulated parties and other stakeholders, …

Reciprocal Fairness, Strategic Behavior & Venture Survival: A Theory Of Venture Capital-Financed Firms, Manuel A. Utset

Scholarly Publications

No abstract provided.

Second Generation Of Law And Economics Of Conflict Of Laws: Baxter's Comparative Impairment And Beyond, Erin O'Hara O'Connor, William H. Allen

Scholarly Publications

In his 1963 article in the Stanford Law Review, “Choice of Law and the Federal System,” Professor William F. Baxter criticized the choice-of-law approach of the First Restatement of the Conflict of Laws. According to the Restatement, courts should apply the law of the state where the last act or event deemed necessary to create a cause of action occurred. In contrast, Baxter advocated a comparative-impairment approach, whereby judges were obligated to apply the law of the state whose public policy would suffer the greatest impairment if its law was not applied. The authors contend that although Baxter’s approach caries …

Emerging Markets In The Age Of Mechanical Reproduction, Manuel A. Utset

Scholarly Publications

No abstract provided.

Back To School With Coase: The Production Of Information And Modes Of Knowledge Within And Across Academic Disciplines, Manuel A. Utset

Scholarly Publications

No abstract provided.

Producing Information: Initial Public Offerings, Production Costs, And The Producing Lawyer, Manuel A. Utset

Scholarly Publications

No abstract provided.

The Discipline Of Institutions And The Disciplining Of Banks, Manuel A. Utset

Scholarly Publications

No abstract provided.

Towards A Bargaining Theory Of The Firm, Manuel A. Utset

Scholarly Publications

No abstract provided.

Disciplining Managers: Shareholder Cooperation In The Shadow Of Shareholder Competition, Manuel A. Utset

Scholarly Publications

No abstract provided.