Regulation
An Inverse Relationship Between the Amount of Litigation and the Amount of Regulation
May 30, 2013
This leader to an article caught my eye: “In markets with little regulation, litigation soars. As regulation rises, litigation falls. Unless consumers are bound by so-called tort reform, their only recourse when harmed by an unregulated product is to sue its maker.” The quotation comes from Life Science Leader, December 2012 at 44. Those who speak and write about law departments chronically bemoan the regulatory load faced by companies. But when rules are laid down by government agencies,...
May 30, 2013
This leader to an article caught my eye: “In markets with little regulation, litigation soars. As regulation rises, litigation falls. Unless consumers are bound by so-called tort reform, their only recourse when harmed by an unregulated product is to sue its maker.” The quotation comes from Life Science Leader, December 2012 at 44. Those who speak and write about law departments chronically bemoan the regulatory load faced by companies. But when rules are laid down by government agencies,...
Baker & Swedloff on Regulation by Liability Insurance
March 8, 2013
Tom Baker (Penn) and Rick Swedloff (Rutgers-Camden) have posted to SSRN Regulation by Liability Insurance: From Auto to Lawyers Professional Liability. The abstract provides: Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships. These tools can act on insureds in a manner that can be understood as regulation. We identify seven categories of such regulatory activities: risk-based pricing, underwriting, contract design, claims management,...
March 8, 2013
Tom Baker (Penn) and Rick Swedloff (Rutgers-Camden) have posted to SSRN Regulation by Liability Insurance: From Auto to Lawyers Professional Liability. The abstract provides: Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships. These tools can act on insureds in a manner that can be understood as regulation. We identify seven categories of such regulatory activities: risk-based pricing, underwriting, contract design, claims management,...
The Empirics of Regulation
March 4, 2013
Now that Cass Sunstein (Harvard) has departed the Obama Administration (and OIRA) and migrated back to academic life, in a recent paper published by the University of Chicago Law Review, Empirically Informed Regulation, Sunstein illustrates the central role data play (or, at least should play) in the development of regulations, with an emphasis on behavioral economics. The paper's abstract follows. "In recent years, social scientists have been incorporating empirical findings about human behavior...
March 4, 2013
Now that Cass Sunstein (Harvard) has departed the Obama Administration (and OIRA) and migrated back to academic life, in a recent paper published by the University of Chicago Law Review, Empirically Informed Regulation, Sunstein illustrates the central role data play (or, at least should play) in the development of regulations, with an emphasis on behavioral economics. The paper's abstract follows. "In recent years, social scientists have been incorporating empirical findings about human behavior...
