Journal ArticleDOI
Vicarious liability under a negligence rule
C. Y. Cyrus Chu,Yingyi Qian +1 more
TLDR
The previous literature has shown that if the agent has limited assets, the vicarious liability law under a strict liability rule can effectively make the principal monitor her agent, and induce the agent to take more care, which thereby reduces the social cost.About:
This article is published in International Review of Law and Economics.The article was published on 1995-09-01. It has received 47 citations till now. The article focuses on the topics: Vicarious liability & Strict liability.read more
Citations
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Journal ArticleDOI
The Potentially Perverse Effects of Corporate Criminal Liability
TL;DR: For example, this article argued that imposing strict vicarious criminal liability on corporations necessarily reduces corporate crime, with higher sanctions leading to lower amounts of corporate crime and the standard economic approach to corporate criminal liability supports this view.
Journal ArticleDOI
An Economic Analysis of State and Individual Responsibility under International Law
Eric A. Posner,Alan O. Sykes +1 more
TL;DR: In this article, the authors argue that the international law of state responsibility has an economic logic similar to that of vicarious liability in domestic law: the law in both cases provides third parties with incentives to control the behavior of wrongdoers whom they can monitor and influence.
Posted Content
Risk Attitudes and the Shift of Liability from the Principal to the Agent
TL;DR: In this paper, the problem of illegal behavior within a principal-agent framework is studied, and the authors show that shifting the liability upon the risk averse agent reduces the principal net benefit, thus favoring deterrence of wrongdoing; however, it can also increase or reduce the agent effort in cheating.
Posted Content
Torts, Expertise and Authority: Liability of Physicians and Managed Care Organizations
TL;DR: It is found that the practice of reviewing the medical decisions of physicians affects their incentives to take care, which implies that it is efficient for MCOs to be held liable for the torts committed by their physicians.
Journal ArticleDOI
Using decoupling and deep pockets to mitigate judgment-proof problems
TL;DR: The authors examined how financial penalties for social damages can be structured to mitigate judgment-proof problems, where a producer has insufficient wealth to compensate victims for the most serious damages that can arise from his activities, and showed that a policy in which assessed penalties are decoupled from realized damages generally generates greater social surplus than does a policy of compensatory damages.
References
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Journal ArticleDOI
Hierarchies and Bureaucracies: On the Role of Collusion in Organizations
TL;DR: In this article, the analysis of hierarchical structures does not boil down to a compounding of the basic inefficiency, due to the fact that going from the simple two-tier principal/agent structure to more complex ones introduces the possibility of asymmetric information and insurance motives (or limited liability constraints).
Book
Economic Analysis of Accident Law
TL;DR: A group of legal scholars and economists have focused on identifying the effects of accident law on people's behaviour as discussed by the authors, and Shavell's book is the definitive synthesis of research to date in this new field.
Book
Collusion in hierarchical agency
Fred Kofman,Jacques Lawarree +1 more
TL;DR: In this paper, shareholders can use auditors' reports to contract with a privately-informed manager, and the optimal contract may specify random external audits, which raises the cost of preventing collusion.
ReportDOI
Optimal Law Enforcement with Self-Reporting of Behavior
Louis Kaplow,Steven Shavell +1 more
TL;DR: In this article, the authors add self-reporting to the model of the control of harmful externalities through probabilistic law enforcement, and characterize the optimal scheme, which offers two advantages over schemes without selfreporting: enforcement resources are saved and risk is reduced.
Journal ArticleDOI
The Potentially Perverse Effects of Corporate Criminal Liability
TL;DR: For example, this article argued that imposing strict vicarious criminal liability on corporations necessarily reduces corporate crime, with higher sanctions leading to lower amounts of corporate crime and the standard economic approach to corporate criminal liability supports this view.