New Horizons in Law and Economics series – serie

This book considers how a regulatory enforcement policy should be designed to efficiently induce proactive corporate compliance.It first explores two major schools of thought regarding law enforcement, both the deterrence and cooperative approaches, and shows that neither of these represents an optimal regulatory enforcement paradigm from a social welfare perspective. It provides a critical analysis of recent developments in US Federal corporate liability regimes, and proposes a generic framework that better tailors sanction schemes and monitoring systems to regulatee performance. The proposed framework efficiently induces corporate proactive compliance, while maintaining an optimal level of deterrence.This insightful book will appeal to academics in law and economics, behavioral economics, criminology, and business, as well as to practitioners and policymakers.Contents: Prologue: The President Coolidge1. IntroductionPart I: Major Schools of Thought Regarding Law Enforcement2. Deterrence-based Regulatory Enforcement3. Cooperative Enforcement4. The Reconciliation of Deterrence-based and Cooperative EnforcementPart II: Corporate Liability and the Incentive Apparatus for Corporate Proactive Compliance5. Corporate Liability and Compliance Management Systems6. Corporate Liability Regimes: A Law and Economics AnalysisPart III: Corporate Monitors: Can 'Swords' Turn Into 'Shields'?7. Corporate Monitors: The Emerging Framework of Deferred Prosecution Agreements8. Corporate Monitors: Facilitating an Efficient Targeted Monitoring System9. Concluding RemarksBibliographyIndex

The increasing shift towards digital publishing has provoked much debate concerning the issues surrounding ‘'Open Access’' (OA), including its economic implications. This timely book considers how the future of academic publishing might look in a purely digital environment and utilises unique empirical data in order to analyze the experiences of researchers with, as well as attitudes towards, OA publishing.Presenting findings from a novel, in-depth survey with more than 10,000 respondents from 25 countries, this book shows that the research culture of scientific research differs considerably between disciplines and countries. These differences significantly determine the role of both '‘gold’' and '‘green’' forms of OA and foster both opportunity and risk. Discussing their findings in the light of recent policy attempts to foster OA, Thomas Eger and Marc Scheufen reveal considerable shortcomings and lack of knowledge on fundamental features of the academic publishing market and conclude by highlighting a policy agenda for its future development.Well-timed and far-reaching, this book will be of particular interest to students and scholars interested in the economic analysis of copyright law. Academic librarians and research sponsors will also benefit from the insights offered.

With the Chinese government planning a comprehensive and detailed reform of regulatory law, the European experience is likely to contribute significantly. This timely book analyses comparative Chinese and EU regulatory reform from a Law and Economics perspective. With eminent international contributors, Regulatory Reform in China and the EU sets out a reform agenda by addressing financial markets, social and administrative regulation, and environmental protection. The first part of the book discusses the banking sector reform and the stock market regulation concerning institutional investors, insider trading and private enforcement. A second part discusses contract law and considers how EU state aid policy could also influence reform on (local) government in other jurisdictions. Thirdly, environmental pollution and the need for stricter regulation are considered, with a focus on the possibilities of investment in new technology, such as offshore carbon capture and storage, economic growth and the nexus between WTO law and climate change. The fourth and final part of the book provides an essay by Jonathan Klick on the empirical analysis of regulation, with a particular focus on field experiments in China. Academics and postgraduate students of both Economics and Law with a particular interest in regulation will find this book valuable and compelling. Policy-makers and practitioners will also benefit from the insights revealed by the collaboration of lawyers and economists.Contributors include: R. Chen, Y. Chen, J. Dai, M.G. Faure, S. Feng, B. Gui, H. Jiye, J. Klick, W. Li, R.A. Partain, N. Philipsen, X. Tao, S. Weishaar, G. Xu, W. Xu, T. Zhou, Q. Zhou

The Consumer Welfare Hypothesis in Law and Economics is a compelling account of market relations with firm roots in economic theory and legal practice. This incisive book challenges the mainstream view that allocative efficiency is about total welfare maximisation. Instead, it argues for the consumer welfare hypothesis, in which allocating resources efficiently means maximising consumer welfare, and demonstrates that legal structures such as antitrust and consumer law are in reality designed and practised with this goal in mind.Using this paradigm, Fabrizio Esposito overcomes the opposition between efficiency and distribution and provides a firmer basis for debates about the foundations of contract law, antitrust law and consumer law, particularly in the European Union. The outcome is a bilateral view of the connection between the law and the economy and a rich research agenda to further understanding of the legal-economic nexus.Scholars and students of law and economics, as well as contract, consumer and antitrust and competition law will find this book a thought-provoking study. Its innovative yet straightforward conceptual framework will also be of interest to practitioners, policymakers and stakeholders in these fields.

This important book tackles the problem of inflation in contract law - whether, and to what extent, contract rules should take inflation into account.The book offers an original approach in proposing that the distributive effects of inflation are an important factor in the design of contract rules. The author also finds that the wealth distribution caused by inflation is relevant to the design of contract rules whichever normative perspective of the contract law one adopts. The book draws theoretical and practical implications of the analysis and suggests that different starting points will result in different solutions. Inflation and the Enforcement of Contracts is essential to anyone interested in research or policy making in the area of contract law.

In this path-breaking book, Richard Zerbe introduces a new way to think about the concept of economic efficiency that is both consistent with its historical derivation and more useful than concepts currently used. He establishes an expanded version of Kaldor-Hicks efficiency as an axiomatic system that performs the following tasks: the new approach obviates certain technical and ethical criticisms that have been made of economic efficiency; it answers critics of efficiency; it allows an expanded range for efficiency analysis; it establishes the conditions under which economists can reasonably say that some state of the world is inefficient. He then applies the new analysis to a number of hard and fascinating cases, including the economics of duelling, cannibalism and rape. He develops a new theory of common law efficiency and indicates the circumstances under which the common law will be inefficient.The book will be of great interest to scholars, students, and practitioners interested in the concept of economic efficiency and how it should be applied to law and economics.

One of the major effects of the continual process of European integration is the growing importance of transnational institutions and the accompanying legal harmonization. Such institutional changes have led to a seemingly irreversible transformation in public decision making, whereby power at the national level is displaced to the European and regional levels. This essential book provides a law and economics analysis of the challenges arising from these shifts in authority.The process of harmonization is investigated from a normative point of view, in order to examine whether a uniform legal framework should be promoted. On the positive side, the goal is to assess the efficiency of this process and its impact on public policies. The authors then turn to applied issues and propose an agenda for future research. The book comprehensively covers both private and public law, as well as applied and theoretical issues. The authors analyse the legal debate from a new political economy perspective, offering diverse and sometimes contrasting views.The Economics of Harmonizing European Law highlights the debate between competition and harmonization which will be sure to shape the future of Europe. It should be read by students and scholars of law and economics, and European policymakers. It will also provide a valuable reference in the field of law harmonization for law practitioners.

In this path-breaking book, Richard Zerbe introduces a new way to think about the concept of economic efficiency that is both consistent with its historical derivation and more useful than concepts currently used. He establishes an expanded version of Kaldor-Hicks efficiency as an axiomatic system that performs the following tasks: the new approach obviates certain technical and ethical criticisms that have been made of economic efficiency; it answers critics of efficiency; it allows an expanded range for efficiency analysis; it establishes the conditions under which economists can reasonably say that some state of the world is inefficient. He then applies the new analysis to a number of hard and fascinating cases, including the economics of duelling, cannibalism and rape. He develops a new theory of common law efficiency and indicates the circumstances under which the common law will be inefficient.The book will be of great interest to scholars, students, and practitioners interested in the concept of economic efficiency and how it should be applied to law and economics.

This book argues that the Internet revolution should exert a far more significant influence on economic thinking and on the perception of law. The authors acknowledge that the economic analysis of law provides a potentially powerful framework for evaluating regulatory approaches to the Internet. However, they question the capacity of traditional law and economics models to define the scope of legal intervention, both in cyberspace and in other more traditional markets which have also been influenced by the recent technological revolution.The book examines the conventional application of law and economics, and contends that the new reality of cyberspace transforms the basic theoretical tenets of this approach and requires fresh conceptual thinking. It challenges fundamental concepts such as the notion of work as linked to the workplace, the notion of community as linked to geographical space, the sources of law and their traditional connection with the state, the belief that proxies and representatives are indispensable for collective action and public decision-making processes, and the role of technology and its relationship with the law. It covers the analysis of both economic and non-economic markets, and includes a thorough examination of legislation, case law and the academic literature relating to cyberspace. The authors conclude that there is pressing need for re-evaluating the analytical tools used to study the information environment, and propose an innovative approach for the role of technology within the law and economics framework.This book represents a groundbreaking attempt to critically analyze the suitability of traditional law and economics for the new digital environment. Scholars and students working in the field of law and economics, and lawyers interested in technology, intellectual property, cyberlaw and governance will find this a stimulating and thought-provoking volume.

This book offers a timely and critical evaluation of the Chicago School approach to antitrust law. Recent judgements by the United States Supreme Court (in cases such as Kodak) and the debate surrounding the Microsoft monopoly have led to the view that antitrust has entered the post-Chicago era, in which previous immoderations are tempered, and more refined and accurate analyses take precedence. This claim is made at a time when European competition policy is gradually embracing an economics-based approach. The authors discuss the economic foundations of competition policy and the different ways in which both American and European competition law does - or does not - take account of economic insights. Although the book makes no claim to provide a definitive answer to the host of questions arising from the complexities of antitrust, it does offer an important contribution to a better understanding of the many 'interfaces' between economic thinking and sound legal policy.More than 20 years on from the initial successes of the Chicago School, this book provides a timely appraisal of developments in antitrust law. It will be an enlightening and challenging read for a host of academics, practitioners and policymakers including industrial and political economists, lawyers, regulators and corporate strategists.

Economic crime is, by definition, crime committed to gain profit within an otherwise legitimate business. Examples are illegal pollution, brand name infringement and tax evasion. The victims of such crimes may be private citizens, businesses and the state. The leading authors in this vital new book survey recent advances in the study of economic crime from a variety of disciplinary perspectives.The key areas examined are:the economics of corporate crimeenforcing regulationlaw and economics of environmental crimecorporate fraud and tax evasionthe history of economic crimeThis important volume will be of interest to scholars and policymakers involved in examining and regulating economic crime in both developed and developing countries.

Despite the increasing trend towards deregulation, the public regulation of private activities remains a common phenomenon in industrialized countries. However, it is frequently claimed that slow and costly regulatory licensing procedures impede economic growth. This book investigates the strategic and adaptive interaction between citizen-applicants and administrators in regulatory licensing bodies, and studies the effects of policies to accelerate and simplify these processes.Based on a variation and extension of the enforcement game, the author demonstrates that amendments to procedural rules which aim to speed-up and improve licensing procedures may have the effect of reducing social welfare. He illustrates that the failure of a policy to increase the number of applications implies a failure to increase the number of licenses granted. This in turn causes a reduction of social welfare. Importantly, he shows that the reverse implications are not true and that despite an increase in the number of applications or licenses granted, social welfare may still decline. Therefore, he argues that any evaluation of procedural reforms on purely theoretical grounds is impossible. Only the measurement of real improvements in social welfare will verify the success of a policy. To establish failure, however, it is simply necessary to observe a decrease in the number of applications or licenses granted.This book is a rare combination of game theoretic modeling and microeconomic analysis on the effects of variations in the procedural rules of licensing. The conclusions drawn will interest and inform a wide variety of academics and researchers working in the fields of law and economics, regulation, administrative law and game theory.

Law and the State provides a political economy analysis of the legal functioning of a democratic state, illustrating how it builds on informational and legal constraints. It explains, in an organised and thematic fashion, how competitive information enhances democracy while strategic information endangers it, and discusses how legal constraints stress the dilemma of independence versus discretion for judges as well as the elusive role of administrators and experts.Throughout the book, empirical evidence and comparative studies illuminate sometimes provocative theoretical views on issues such as: the place of the rule of law in constitutional and banking systems; regulation of copyright, art and heritage; innovations and technologies of communication and information; terrorism and media manipulation. Both private and public law, applied and theoretical issues are covered comprehensively.Academics and researchers of law and economics and public choice will find much to challenge and inform them within this book.

Dissatisfaction with the working of courts is ubiquitous. Legal inertia and maladministration are the norm in many countries and have significant social and economic repercussions. No longer a theme relegated to the peripheries of economic analysis, the administration of justice is now recognised by most economists as being of fundamental importance for economic development, a factor increasingly being acknowledged by policymakers at all levels. The departure point for this book is the authors' belief in the need for a systematic analysis of the incentive structures facing key players in the courts and litigation process. They focus not only on structures pertaining to the common law tradition, but offer analysis of issues not normally found in the North-American literature, such as the Latin notary and the selection and values of judges in civil law systems. They further propose an ample list of considerations for a reform agenda.Offering a comprehensive look at the incentives facing many key players in the administration of justice, this book should be of great interest to law and economics scholars, civil law professors, legal reformers, international development institutions and law students mindful of the need to improve the functioning of courts.

The essence of democratic power lies in the capacity to protect individual freedom while organizing the necessary coercion associated with any form of government. Yet, as the authors of this book maintain, developing coercion in order to protect freedom, and containing coercion in order to further protect freedom, is an arduous task, and one that faces any democratic Leviathan. The aim of this book is to explore this paradox and to analyse the intricate balance of freedom and coercion in developing states. In so doing it considers the legal and institutional conditions under which coercion and violence are admitted and/or permitted, and how these conditions should be organized in order to preserve and develop freedom as far as possible.Democracy, Freedom and Coercion comprehensively covers both private and public law, both applied and theoretical issues, and will therefore be of great interest to students studying law and economics. It will also serve as a reference tool to those academics in the field of legal competition, especially from the perspective of European issues.

This well-documented book discusses the power and limitations of class actions with insights and analysis from a panel of distinguished scholars. It pays special attention to the introduction and the applicability of such a legal device in European civil law countries. The book offers a broad legal and economic investigation, drawing insights from US judicial experience and giving a rigorous discussion of both the philosophical and constitutional aspects and the economic mechanisms and incentives set up by class actions. The Law and Economics of Class Actions in Europe will be a welcome addition to the bookshelf of all those interested in the function of class action litigation for promoting justice and efficiency. In particular, it will benefit graduate and postgraduate students, researchers and academics in law, economics, and law and economics, policy makers, judges and attorneys. Contributors: J.G. Backhaus, G. Calabresi, A. Cassone, M.S. Cenini, B. Deffains, F. Denozza, N. Garoupa, A. Gidi, F. Gomez, M.F. Gouveia, S. Harnay, S. Issacharoff, E. Langlais, J. Luther, A. Marciano, G.P. Miller, F. Parisi, G.B. Ramello, L. Sacconi, M.I. Saez, F.M. Scherer, L. Toffoletti, T.S. Ulen, M. Valimaki

This book discusses a paradigm shift for dealing with the internalization of external costs in transport. Crucial to the analysis is the insight that the polluters are not the only cost drivers; both pollutees and the state can also contribute to reducing social costs. The authors show that applying the Cheapest Cost Avoider Principle (CCAP) instead of the Polluter Pays Principle (PPP) can lead to substantial welfare improvements.This book develops the foundations for the CCAP, which is shown to be superior to the PPP, both methodologically and practically, in identifying the most appropriate policy for dealing with external effects in transport. The PPP neglects the fact that external costs are jointly caused by all involved parties and that the externality problem is of a reciprocal nature: to avoid harm to a pollutee necessarily inflicts harm on the polluter. The real problem for welfare maximization - addressed by the CCAP - is to avoid the most serious harm. The CCAP guarantees efficiency, fair competition and equity. Its use of some form of cost-benefit analysis also helps to avoid regulatory failure. The CCAP incorporates 'polluter pays' as one possible outcome; however, this is not a foregone conclusion. Two case studies - showing that the methodology of the CCAP can be applied in practice - and a critical assessment of the European greening transport policy complete this volume.Discussing the relevance of the economic analysis of law for transport policy, this book will appeal to academics in the fields of law and economics, environmental policy and regulatory impact assessment, and European transport policy. Policymakers and civil servants concerned with transport policy, environmental policy and regulatory impact assessment will also find this book valuable.

Comparative Contract Law and Economics provides a deeper understanding of the similarities and differences between the legal systems of France, England, the US and Germany in terms of contract law. The application of the economically inspired optimal model rule as a uniform term of comparison provides valuable insights into the pre-contractual duties of disclosure, the phenomena of unforeseen contingencies and the unilateral termination of contracts. The objective evaluation method enriches traditional comparative contract law by enabling further qualitative assessment. The book offers ample opportunities for further research and for 'better' law making, legislation and jurisprudence. Moreover, it enables comparative contract law to offer clear-cut, objective recommendations on the possible improvements of legal rules or decisions. This well-documented book will appeal to postgraduate students and scholars of law and economics, and comparative law. Judges and law practitioners will also find much to interest them in this pioneering volume.Contents: 1. Introduction2. Pre-contractual Duty to Disclose Information3. Unforeseen Contingencies4. Unilateral Termination5. Summary and ConclusionsReferencesIndex