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Are Punitive Damages Really Insignificant, Predictable, and Rational? A Comment on Eisenberg et al

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Author Info
Polinsky, A Mitchell

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Abstract

This comment on an empirical study of punitive damages by Theodore Eisenberg and several coauthors makes three main points. First, contrary to what they imply, Punitive damages may be a significant factor in litigation despite the fact that only a small fraction of cases in their sample involve punitive damage judgments. Second, notwithstanding their interpretation, their results are consistent with the possibility that punitive damages are awarded on a random basis. Third, in opposition to their suggestion, punitive damages may not be rational even if the level of punitive damages is systematically and positively related to the level of compensatory damages. Copyright 1997 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Legal Studies.

Volume (Year): 26 (1997)
Issue (Month): 2 (June)
Pages: 663-77
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Handle: RePEc:ucp:jlstud:v:26:y:1997:i:2:p:663-77

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  1. repec:bep:buspol:5:2003:1:1050-1050 is not listed on IDEAS
  2. Andrew F. Daughety & Jennifer F. Reinganum, 2000. "Found Money? Split-Award Statutes and Settlement of Punitive Damages Cases," Working Papers 0001, Department of Economics, Vanderbilt University, revised Mar 2001. [Downloadable!]
    Other versions:
  3. Thomas A. Eaton & David B. Mustard & Susette M. Talarico, 2005. "Punitive Damages and the Processing of Tort Claims," Law and Economics 0501002, EconWPA. [Downloadable!]
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