Aggregate litigation and regulatory innovation: Another view of judicial efficiency
AbstractIn this article, we argue that aggregate litigation and the court system can not only restore the protection of victims and the production of deterrence, but also play a pivotal role in stimulating regulatory innovation. This is accomplished through a reward system that seems largely to mimic the institutional devices used in other domains, such as intellectual property rights, by defining a proper set of incentives. Precisely the described solution relies on creating a specific economic framework able to foster economies of scale and grant a valuable property right over a specific litigation to an entrepreneurial individual, who in exchange provides the venture capital needed for the legal action, and produces inputs and focal points for amending regulations. In this light, aggregate litigation thus can be equally seen as an incubator for regulation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Review of Law and Economics.
Volume (Year): 32 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/irle
Aggregate litigation; Efficiency; Market for risk; Hierarchy; Regulation; Innovation; Asbestos;
Other versions of this item:
- Giovanni Battista Ramello, 2011. "Aggregate litigation and regulatory innovation: another view of judicial efficiency," ICER Working Papers 24-2011, ICER - International Centre for Economic Research.
- Ramello, Giovanni B., 2012. "Aggregate Litigation and Regulatory Innovation: Another View of Judicial Efficiency," IEL Working Papers 8, Institute of Public Policy and Public Choice - POLIS.
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Halpern, P. J. & Turnbull, S. M., 1983. "Legal fees contracts and alternative cost rules: An economic analysis," International Review of Law and Economics, Elsevier, vol. 3(1), pages 3-26, June.
- Calabresi, Guido & Schwartz, Kevin S., 2011. "The Costs of Class Actions: Allocation and Collective Redress in the U.S. Experience," IEL Working Papers 1, Institute of Public Policy and Public Choice - POLIS.
- Gruenspecht, Howard K. & Lave, Lester B., 1989. "The economics of health, safety, and environmental regulation," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 26, pages 1507-1550 Elsevier.
- Edward L. Glaeser & Andrei Shleifer, 2001.
"The Rise of the Regulatory State,"
NBER Working Papers
8650, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Andrei Shleifer, 2001. "The Rise of the Regulatory State," Harvard Institute of Economic Research Working Papers 1934, Harvard - Institute of Economic Research.
- Bruno Deffains & Eric Langlais, 2011.
"Informational Externalities and Settlements in Mass Tort Litigations,"
EconomiX Working Papers
2011-14, University of Paris West - Nanterre la Défense, EconomiX.
- Bruno Deffains & Eric Langlais, 2011. "Informational externalities and settlements in mass tort litigations," European Journal of Law and Economics, Springer, vol. 32(2), pages 241-262, October.
- Deffains, Bruno & Langlais, Eric, 2010. "Informational Externalities and Settlements in Mass Tort Litigations," MPRA Paper 23016, University Library of Munich, Germany.
- Michelle J. White, 2004. "Asbestos and the Future of Mass Torts," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 183-204, Spring.
- Guido Calabresi & Kevin Schwartz, 2011. "The costs of class actions: allocation and collective redress in the US experience," European Journal of Law and Economics, Springer, vol. 32(2), pages 169-183, October.
- Donatella Porrini & Giovanni B. Ramello, 2011.
"Class action and financial markets: insights from law and economics,"
Journal of Financial Economic Policy,
Emerald Group Publishing, vol. 3(2), pages 140-160, July.
- Ramello, Giovanni B. & Porrini, Donatella, 2010. "Class action and financial markets: Insights from law and economics," POLIS Working Papers 143, Institute of Public Policy and Public Choice - POLIS.
- Edward L. Glaeser & Jose Scheinkman & Andrei Shleifer, 2002.
"The Injustice of Inequality,"
Harvard Institute of Economic Research Working Papers
1967, Harvard - Institute of Economic Research.
- List John A., 2007.
"Field Experiments: A Bridge between Lab and Naturally Occurring Data,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 5(2), pages 1-47, April.
- John List, 2006. "Field experiments: A bridge between lab and naturally occurring data," Artefactual Field Experiments 00083, The Field Experiments Website.
- John A. List, 2007. "Field Experiments: A Bridge Between Lab and Naturally-Occurring Data," NBER Working Papers 12992, National Bureau of Economic Research, Inc.
- Edward Glaeser & Simon Johnson & Andrei Shleifer, 2001. "Coase Versus The Coasians," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 853-899, August.
- Alberto Cassone & Giovanni Ramello, 2011.
"The simple economics of class action: private provision of club and public goods,"
European Journal of Law and Economics,
Springer, vol. 32(2), pages 205-224, October.
- Cassone, Alberto & Ramello, Giovanni B., 2011. "The Simple Economics of Class Action: Private Provision of Club and Public Goods," IEL Working Papers 3, Institute of Public Policy and Public Choice - POLIS.
- Alberto Cassone & Giovanni B. Ramello, 2011. "The Simple Economics of Class Action: Private Provision of Club and Public Goods," ICER Working Papers 06-2011, ICER - International Centre for Economic Research.
- Lorenzo Sacconi, 2011. "The case against lawyers’ contingent fees and the misapplication of principal-agent models," European Journal of Law and Economics, Springer, vol. 32(2), pages 263-292, October.
- De Mot, Jef & Depoorter, Ben, 2010. "Tort law and probabilistic litigation: How to apply multipliers to address the problem of negative value suits," International Review of Law and Economics, Elsevier, vol. 30(3), pages 236-243, September.
- Daniel F. Spulber, 1989. "Regulation and Markets," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262192756.
- John List & David Reiley, 2008.
Artefactual Field Experiments
00091, The Field Experiments Website.
- Giovanni B. Ramello, 2005. "Property rights, firm boundaries, and the republic of science--A note on Ashish Arora and Robert Merges," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1195-1204, December.
- Juergen Backhaus, 2011. "The law firm as an investment bank in class actions," European Journal of Law and Economics, Springer, vol. 32(2), pages 225-228, October.
- Kolstad, Charles D & Ulen, Thomas S & Johnson, Gary V, 1990. "Ex Post Liability for Harm vs. Ex Ante Safety Regulation: Substitutes or Complements?," American Economic Review, American Economic Association, vol. 80(4), pages 888-901, September.
- Michelle J. White, 2004. "Asbestos and the Future of Mass Torts," NBER Working Papers 10308, National Bureau of Economic Research, Inc.
- Michelle J. White, 2006. "Asbestos Litigation: Procedural Innovations and Forum Shopping," The Journal of Legal Studies, University of Chicago Press, vol. 35(2), pages 365-398, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.