Final-offer arbitration in Major League Baseball provides an ideal setting for examining the empirical regularities that are associated with bargaining failure, since final offers, salaries, and player statistics, which provide the fundamental facts for the case, are all readily available. Using...

Models of endogenous regulatory threat suggest that firms may cut prices in order to ease a threat of regulation. I test the implications of these models using stock market data from an episode of regulatory threat in the credit card market. The data show that the initial threat led to negative...

When society is divided into two groups with different actual or perceived crime rates, maintaining a low crime rate, minimizing the total number of innocent individuals convicted of a crime, and keeping the probability of wrongly convicting an innocent individual equal across groups are...