This paper is the second of two parts of a general theory of regulation. An effective regulatory system, whether created by a public legislative body or by private charter, must be coherent if it is to be successful. Coherence is a ‘property’ of well-designed regulatory systems. We suggest...

Under Sec. 3(8) and 4(5) of the Carriage of Goods by Sea Act, liability is allocated to the common carrier for damages to cargo valued less than 500, and the carrier may not reallocate any of this liability to the cargo owner. The paper analyzes the economic effect of the regime, and shows that...

This paper studies situations where a single buyer with uncertain demand wishes to buy from a small number of suppliers. In this setting it is well understood that supply function bidding results in the product not being produced at the lowest cost, that is, in the loss of production efficiency....

This paper aims at showing how "path dependence" approach may explain the technological challenge in the PV cells industry. The first section will point up the factual elements which satisfy the conditions of path-dependence as defined by Arthur and David in the industry of the photovoltaic...

Many institutional investors rely on a proxy advisory firm to assist them in voting the company proxy and fulfilling their fiduciary responsibility to vote in the interest of beneficial shareholders. The largest and most influential proxy advisory firm is Institutional Shareholder Services...

Patents lead to ex-post dead-weight losses arising from a non-competitive market structure for the invention. Many have argued that introducing independent invention as a defense (IID) to patent infringement can increase social welfare by decreasing such dead-weight losses at the price of a...

This paper studies an organizational knowledge sharing process which requires costly "teaching" and "learning" efforts on the part of the sender and receiver, respectively. The process is a team problem in which the principal rewards successful communication by optimally rewarding performance....

Although antitrust courts sometimes stress the competitive process, they have not deeply explored what that process is. Inspired by the theory of the core, we explore the idea that the competitive process is the process of sellers and buyers forming improving coalitions. Much of antitrust can be...

Since first embarking on the road of risk management options for the regulation of recombinant DNA (rDNA) activities and use in 1978, the European Union (EU) has largely failed to create a regulatory and policy environment regarding genetically modified (GM) crops and their cultivation that is...