Moral rules and social norms influence whether individuals break the law. We characterize optimal law enforcement when some individuals obey internalized moral rules and implement social norms for other individuals who prefer to comply with them. Moral individuals and norm followers are linked...

We examine how long-term life insurance contracts can be designed to incorporate uncertain future bequest needs. An individual who buys a life insurance contract early in life is often uncertain about the future financial needs of his or her family, in the event of an untimely death. Ideally,...

This paper analyzes the incentive properties of the standard and burden of proof for a finding of negligence, when evidence is imperfect and rests with the parties. We show that the "preponderance of evidence" standard provides maximal incentives to exert care. This holds even though litigants...

Two opposed parties seek to influence an uninformed decision maker. They invest in acquiringinformation and select what to disclose. The decision maker then adjudicates. We compare thisbenchmark with a procedure allowing adversarial cross-examination. A cross-examiner tests theopponent in order...

An arbiter can decide a case on the basis of his priors, or the two parties to the conflict may present further evidence. The parties may misrepresent evidence in their favor at a cost. At equilibrium the two parties never testify together. When the evidence is much in favor of one party, this...