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We extend consideration of cumulative harm in products liability to the case of bilateral care. For this specification, the level of care and the level of output chosen by the firm are inextricably interrelated, and different liability regimes yield different combinations of care and output. As...
This paper argues that the conventional legal doctrine that emphasizes lack of choice among suppliers or contracts as an element of unconscionability is misguided. I show that when a seller with significant market power offers only one contract, fear of alienating sophisticated customers can...
Single-firm event studies play an important role in both scholarship and litigation despite the general invalidity of standard inference. We use a broad cross-section of 20002007 CRSP data and find that the standard approach performs poorly in terms of both Type I and Type II error rates. We...
We study the Securities and Exchange Commission's (SEC) enforcement decisions in the context of the highly salient back-dating scandal. We find that (1) the SEC shifted its mix of investigations significantly toward backdating and away from other accounting issues; (2) event studies of stock...
In this paper, we test the effect of normative expectations and legal framing on cooperation in an experimental public good game with and without sanctions. We show that cooperation increases substantially as normative expectations and behavioral patterns coevolve. In the absence of sanctions,...
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