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The collection of all scholarly commentary on law, economics, and more

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CNBC Street Sense on Wall Street Bonuses

I appeared on CNBC’s Street Sense today to talk about Morgan Stanley’s new policy on bonuses and what it means for the future of Wall Street executive compensation.  See here.

Civil Gideon and lawyer licensing

Ted Frank cites my post recognizing that lower income debtors lack proper representation because of what I called “the stranglehold of lawyer licensing.” But then he says that I forget() the public choice aspect of the legal cartel’s response to the problem: rather than end the cartel that is causing the problem, the legal community ... Civil Gideon and lawyer licensing

The insider trading sideshow in the corporate crime circus

Jesse Eisinger is upset that the wrong people are going to jail. Nobody from Lehman, Merrill Lynch or Citigroup, no top AIG or Bear Stearns executives, no big mortgage company executive, not even Angelo Mozillo.   Eisinger dismisses the insider trading prosecutions as a “sideshow” to take attention away from the lack of prosecutions over the banking ... The insider trading sideshow in the corporate crime circus

Alternative careers in law

Conventional law jobs might be getting harder to find, but there are alternatives, as I noted in my work-in-process with Bruce Kobayashi described here.  Recent news stories suggest the range of options. Financing divorce cases Here’s the NYT story about Balance Point Divorce Funding, with more from Christine.  As the Times story notes, this is ... Alternative careers in law

Free to Choose Wrapup

Thanks to all of the participants for the excellent posts over the last two days.  There are a couple of excellent comment threads where the conversation continues, and I hope that over the next few days participants and readers will get a chance to comment on the posts.  Indeed, if any of the participants feel ... Free to Choose Wrapup

Ginsburg and Wright on Behavioral Law and Economics: the Never-Ending Quest for a Third Way

In the brave new world contemplated by the advocates of government policies informed by behavioral law and economics, many more aspects of each individual’s life will be regulated, or more stringently regulated, than at present.  Within the legal academy, the growth of the behavioral law and economics movement has been dramatic.  Surveying all legal publications ... Ginsburg and Wright on Behavioral Law and Economics: the Never-Ending Quest for a Third Way

Ginsburg and Wright on A Taxonomy of Behavioral Law and Economics Skepticism

The behavioral economics research agenda is an ambitious one for several reasons.  The first reason is that behavioral economics requires a theory “true” preferences aside from – and in opposition to — the “revealed” preferences of the decision maker.  A second reason is that while collecting and documenting individual biases in an ad hoc fashion ... Ginsburg and Wright on A Taxonomy of Behavioral Law and Economics Skepticism

Judd Stone on Behavioral Economics, Administrative Agencies, and Unintended Consequences

Professors Henderson and Ribstein touch on two theoretical failures of the behavioralist movement which both reveal the prematurity of ‘behaviorally-informed’ regulatory proposals: the behavioralist assumptions that (1) behavioral biases theoretically necessitate, or at least enable, public intervention, and (2) governmental entities can net improve individual outcomes over the status quo of unfettered, if limited, human ... Judd Stone on Behavioral Economics, Administrative Agencies, and Unintended Consequences

Todd Henderson on Project Behavior: What the Battle is Really About

Lying in bed for the past day with a stomach bug, I’ve enjoyed reading the contributions of my friends and colleagues. Perhaps the wisest course would be to, like Leonardo DiCaprio’s character pretending to be a doctor in “Catch Me If You Can,” say “I concur” and slip back under the covers. My general views ... Todd Henderson on Project Behavior: What the Battle is Really About

Erin O’Hara on The Free Market Side of Behavioral Law and Economics

Behavioral law and economics (“BLE”) can influence legal policy analysis and regulation in many ways.  On balance, it is not at all clear that this new paradigm undermines a policy commitment to markets.  From one vantage point, the BLE movement can be said to help preserve markets. Importantly, those using the paradigm often start with ... Erin O’Hara on The Free Market Side of Behavioral Law and Economics

Stephen Bainbridge on Mandatory Disclosure: A Behavioral Analysis

Mandatory disclosure is a—maybe the—defining characteristic of U.S. securities regulation. Issuers selling securities in a public offering must file a registration statement with the SEC containing detailed disclosures, and thereafter comply with the periodic disclosure regime. Although the New Deal-era Congresses that adopted the securities laws thought mandated disclosure was an essential element of securities ... Stephen Bainbridge on Mandatory Disclosure: A Behavioral Analysis

Sprigman and Buccafusco on Behavioral Law and Economics and the Road from Lab to Law

In our second post, we want to discuss some of the implications of the study (the details of which we described in our first post). One of the consistent concerns about BL&E in this symposium is about the too-quick jump from data to policy. We should emphasize that we think more work needs to be ... Sprigman and Buccafusco on Behavioral Law and Economics and the Road from Lab to Law