Global Justice and Trade: A Puzzling Omission
Economists generally agree that free trade leads to economic growth. This proposition is supported both by theoretical models and empirical data. Further, while the . . .
Global Justice and Trade: A Puzzling Omission
Prediction Markets for Corporate Governance
Building on the success of prediction markets at forecasting political elections and other matters of public interest, firms have made increasing use of prediction . . .
Diabetes Treatments and Moral Hazard
In the face of rising rates of diabetes, many states have passed laws requiring health insurance plans to cover medical treatments for the disease. . . .
The Hydraulic Theory of Disclosure Regulation and Other Costs of Disclosure
Summary This article argues that mandatory securities disclosure regulation has unanticipated and ill-considered consequences. Disclosure regulation makes some forms of behavior more expensive relative to . . .
Antitrust Around the World: An Empirical Analysis of the Scope of Competition Laws and Their Effects
This paper investigates a dataset that codes key features of the competition laws of 102 countries. It first compares the scope of the laws . . .
Incomplete Contracts and Opportunism in Franchising Arrangements
Economic theorists argue that broad termination rights allow franchisors to police opportunism on the part of franchisees which have an incentive to free ride . . .
The New Vote Buying: Empty Voting and Hidden (Morphable) Ownership
Corporate law generally makes voting power proportional to economic ownership. This serves several goals. Economic ownership gives shareholders an incentive to exercise voting power . . .
Backdating Options and Why Executive Compensation is Not All about Norms
In this short essay, we take on some of the common claims surrounding the law and economics of the backdating of options. Most of these claims are rooted in the basic argument that backdating options amounts to concealment of compensation.
Government Regulation of Irrationality: Moral and Cognitive Hazards
Behavioral law and economics scholars who advance paternalistic policy proposals typically employ static models of decision-making behavior, despite the dynamic effects of paternalistic policies. . . .