Regulation versus Litigation: Perspectives from Economics and Law (National Bureau of Economic Research Conference Report)

The efficacy of various political institutions is the subject of intense debate between proponents of broad legislative standards enforced through litigation and those who prefer regulation by administrative agencies. This book explores the trade-offs between litigation and regulation, the circumstances in which one approach may outperform the other, and the principles that affect the choice between addressing particular economic activities with one system or the other. Combining theoretical analysis with empirical investigation in a range of industries, including public health, financial markets, medical care, and workplace safety, __Regulation versus Litigation__ sheds light on the costs and benefits of two important instruments of economic policy. Regulation (agencies) Versus Litigation (courts) : An Analytical Framework / Richard A. Posner -- Efficient Regulation / Andrei Shleifer -- The Trouble With Cases / Frederick Schauer And Richard Zeckhauser -- Tobacco Regulation Through Litigation : The Master Settlement Agreement / W. Kip Viscusi And Joni Hersch -- Gun Control After Heller : Litigating Against Regulation / Philip J. Cook, Jens Ludwig, And Adam Samaha -- The Effects Of Product Liability Exemption In The Presence Of The Fda / Tomas J. Philipson, Eric Sun, And Dana Goldman -- The Impact Of Employment Protection On Workers Disabled By Workplace Injuries / Adam H. Gailey And Seth A. Seabury -- Opting Out Of Workers' Compensation In Texas : A Survey Of Large, Multi-state Nonsubscribers / Alison Morantz -- M & A Break Fees : U.s. Litigation Versus U.k. Regulation / John C. Coates Iv -- Exploring Ex Ante Regulatory Mechanisms For Detecting Prescription Drug Misuse / Stephen T. Parente -- Natural Disaster Management : Earthquake Risk And Hospitals' Provision Of Essential Services In California / Tom Chang And Mireille Jacobson. Edited By Daniel P. Kessler. Includes Bibliographical References And Indexes. Contents 8 Acknowledgments 10 Introduction 12 1. Regulation (Agencies) versus Litigation (Courts): An Analytical Framework 22 2. Efficient Regulation 38 3. The Trouble with Cases 56 4. Tobacco Regulation through Litigation: The Master Settlement Agreement 82 5. Gun Control after Heller: Litigating against Regulation 114 6. The Effects of Product Liability Exemption in the Presence of the FDA 148 7. The Impact of Employment Protection on Workers Disabled by Workplace Injuries 176 8. Opting Out of Workers’ Compensation in Texas: A Survey of Large, Multistate Nonsubscribers 208 9. M&A Break Fees: U.S. Litigation versus UK Regulation 250 10. Exploring Ex Ante Regulatory Mechanisms for Detecting Prescription Drug Misuse 296 11. Natural Disaster Management: Earthquake Risk and Hospitals’ Provision of Essential Services in California 312 Contributors 332 Author Index 334 Subject Index 340   The efficacy of various political institutions is the subject of intense debate between proponents of broad legislative standards enforced through litigation and those who prefer regulation by administrative agencies. This book explores the trade-offs between litigation and regulation, the circumstances in which one approach may outperform the other, and the principles that affect the choice between addressing particular economic activities with one system or the other. Combining theoretical analysis with empirical investigation in a range of industries, including public health, financial markets, medical care, and workplace safety, Regulation versus Litigation sheds light on the costs and benefits of two important instruments of economic policy.
Focusing on the costs and benefits of two important instruments of economic policy, this title explores the trade-offs between litigation and regulation, the circumstances in which one approach may outperform the other, and the principles that affect the choice between addressing particular economic activities with one system or the other.