We argue that the common law standard of proof, given the rules of evidence, does not minimize expected error as usually argued in the legal literature, but may well be efficient from the standpoint of providing maximal incentives for socially desirable behavior. By contrast, civil law's higher...

Economists argue that rich information environments and formal enforcement of contracts are necessary to prevent market failures when information asymmetries exist. We test for the necessity of formal enforcement to overcome the problems of asymmetric information by estimating the value of...

We extend the 1986 signaling model of Reinganum and Wilde by allowing for the possibility of negative expected value (NEV) suits. If filing costs are zero, the equilibrium consistent with the D1 refinement implies that settlement offers face a rejection rate of 100%. If filing costs are...

While most economic studies on corruption are mainly concerned with its actual occurrence, in this paper we claim that most economic effects rather derive from its mere possibility. When corruption is prevented through an expensive monitoring activity and by offering high incentives, its effects...

A simple auction-theoretic framewoek is used to examine symmetric litigation environmentswhere the legal ownership of a disputed asset is unknown by the court. The court observes only the quality of the case presented by each party, and awards the asset to the party presenting the best case....

Using a large sample of litigation events involving publicly listed defendants, we document a surprising fact. The resolution of litigation through a court's decision dominates settlement of litigation from the shareholders point of view; even when the firm loses. We develop a model using agency...

Unskilled and short-term labour migration from Bangladesh to Malaysia has long historical phenomenon which has been contributing both countries micro and macro economy in terms of remittances (Bangladesh) and shortage of 3D labour (Malaysia). This paper objective is to describe migration...

Educating the consumer and fighting against the counterfeiting phenomenon are highly important action fields in every developed country because, although there are cases in which counterfeiting is considered a victimless crime and copying is perceived as an act of recognizing true value, this...