Individuals may repeatedly face a choice of whether to obey a legal rule. Conventional legal scholarship has long assumed that whether such a choice is made repeatedly or is a one-time event has little or no effect on individuals’ decisions. Following models of rational-choice theory,...

Many injurers now offer to buy out victims' property to reduce harm. This pa- per examines the e¢ ciency of buyouts negotiated in the shadow of regulation and liability rules which require injurers to take e¢ cient precautions. It shows that if the social bene?t from precautions is increasing...