nep-law New Economics Papers
on Law and Economics
Issue of 2015‒12‒01
eight papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. The Law and Economics of Litigation By Bruce H. Kobayashi
  2. Drugs, guns and early motherhood in Colombia By Jaime Millán-Quijano
  3. Effective European Antitrust: Does EC Merger Policy Generate Deterrence By Joseph Clougherty; Tomaso Duso; Miyu Lee; Jo Seldeslachts
  4. Evolving roles of accountants as resources for greater accountability in financial reporting, legislative and judicial processes By Ojo, Marianne; Van Akkeren, Jeanette
  5. The effect of lawyers' career concerns on litigation By Rosa Ferrer Zarzuela
  6. Do Firms Respond to Stronger Patent Protection by Doing More R&D? By Joel Blit; Mauricio Zelaya
  7. 3D printing and the intellectual property system By Stefan Bechtold
  8. Cross-Licensing and Competition By Jeon, Doh-Shin; Lefouili, Yassine

  1. By: Bruce H. Kobayashi
    Date: 2015–11–19
  2. By: Jaime Millán-Quijano
    Abstract: This paper examines the effect of violent crime on the prevalence of early motherhood in Colombia. To instrument for the predominance of violent crime I use geographical and temporal variation in drug trafficking networks. My results suggest that one standard deviation increase in the homicide rate induces a 2.55 percentage points increase in the probability of early motherhood
    Keywords: Teenage pregnancy , Violent crime , Drug trafficking
    JEL: D74 K42 J13 C41
    Date: 2015–11
  3. By: Joseph Clougherty; Tomaso Duso; Miyu Lee; Jo Seldeslachts
    Abstract: We estimate the deterrence effects of European Commission (EC) merger policy instruments over the 1990-2009 period. Our empirical results suggest that phase-1 remedies uniquely generate robust deterrence as – unlike phase-1 withdrawals, phase-2 remedies, and preventions – phase-1 remedies lead to fewer merger notifications in subsequent years. Furthermore, the deterrence effects of phase-1 remedies work best in high-concentration industries; i.e., industries where the HHI is above the 0.2 cut-off level employed by the EC. Additionally, we find that phase-1 remedies do not deter clearly pro-competitive mergers, but do deter potentially anti-competitive mergers in high-concentration industries.
    Keywords: Merger, deterrence, European Commission, merger policy, competition policy, antitrust
    JEL: K21 K40 L40
    Date: 2015
  4. By: Ojo, Marianne; Van Akkeren, Jeanette
    Abstract: Jeanette Van Akkeren, Sherrena Buckby, Kim MacKenzie ("A Metamorphosis of the Traditional Accountant: An Insight into Forensic Accounting Services in Australia") argue that there remains some confusion on what constitutes the role of a forensic professional. It is very well the case that clarity of the definition of what constitutes the role of a forensic professional is crucial to determining how effectively such a role can be harnessed. As well as exploring the various roles undertaken by forensic accountants based in the US and other selected common law jurisdictions, this publication aims to contribute to the extant literature on how the role of a forensic professional can be effectively utilized and applied, both from common law and comparative based perspectives - which involve selected jurisdictions that constitute the focus of this study. In so doing it also highlights how a greater degree of accountability and transparency can be introduced into the financial reporting, as well as legal process.
    Keywords: accountability; transparency; common law systems; forensic accounting
    JEL: E6 G2 G3 K2 M4
    Date: 2015
  5. By: Rosa Ferrer Zarzuela
    Abstract: This article studies a model with two lawyers opposing each other in a case where the outcome of the trial depends on the lawyers' talents and choices of effort. The trial outcome provides an implicit incentive because it is informative about the lawyers' talents. Regardless of the functional form used to model the binary trial outcome, the implicit incentive can be characterized by three components, namely, the ex-ante uncertainty on the lawyers' talents, the sensitivity of the trial outcome to the lawyers' talents, and the variance of the noise in the trial outcome, which is endogenous. These components interplay with the lawyers' effort levels, affecting the informativeness of the trial outcome on the lawyers' talents. As a consequence, career concerns introduce distortions in litigation decisions. The strategic interactions that arise affect the equilibrium probability of prevailing in court, litigation costs, and consequently, settlement decisions as well as other stages of the litigation process. Furthermore, the merits of the case serve as a multiplier of the implicit incentive when the sensitivity of the trial outcome to the lawyers' talents is increasing in the difficulty of the case.
    Keywords: Reputational gain, effort incentives, strategic interactions, settlement, endogenous noise.
    JEL: D80 K41 L12
    Date: 2015–09
  6. By: Joel Blit (Department of Economics, University of Waterloo); Mauricio Zelaya (Department of Economics, University of Waterloo)
    Abstract: We examine whether stronger intellectual property rights (IPR) promote firm R&D, using changes in the IPR of export-partner countries as an exogenous source of variation. Constructing an export-weighted index of trade partner IPR by country-industry-year, we find that R&D responds strongly to trade partner IPR, and this after including industry, year, country, and interacted fixed effects. We further find evidence of this relationship at the level of the establishment, using a unique Canadian dataset. Our results suggest a causal link between IPR and firm R&D investments.
    JEL: O34
    Date: 2015–08
  7. By: Stefan Bechtold (ETH Zurich)
    Abstract: Three-dimensional (3D) printing – or “additive manufacturing” – technologies differ from traditional molding and casting manufacturing processes in that they build 3D objects by successively creating layers of material on top of each other. Rooted in manufacturing research of the 1980s, 3D printing has evolved into a broad set of technologies that could fundamentally alter production processes in a wide set of technology areas. This report investigates, from the perspective of an intellectual property scholar, how 3D printing technology has developed over the last few decades, how intellectual property rights have shaped this breakthrough innovation and how 3D printing technologies could challenge the intellectual property rights system in the future. As in other areas of innovation policy, the role of the intellectual property system in fostering innovation in 3D printing technologies is a complex one. It played a beneficial role in some instances (sometimes intended and sometimes unintended), and it may have played a neutral or detrimental role in other instances. Studying the progress of 3D printing technologies thereby also informs us about the intricate relationship between intellectual property and innovation.
    Keywords: Innovation, 3D printing, intellectual property.
    JEL: K29 L60 O30 O32 O34 O38
    Date: 2015–11
  8. By: Jeon, Doh-Shin; Lefouili, Yassine
    Abstract: We study bilateral cross-licensing agreements among N (>2) competing firms. We find that the industry-profit-maximizing royalty can be sustained as the outcome of bilaterally efficient agreements. This holds regardless of whether agreements are public or private and whether firms compete in quantities or prices. We extend this monopolization result to a general class of two-stage games in which firms bilaterally agree in the first stage to make each other payments that depend on their second-stage non-cooperative actions. Policy implications regarding the antitrust treatment of cross-licensing agreements are derived.
    Keywords: antitrust and intellectual property; collusion; cross-licensing; royalties
    JEL: D14 F13 L24 L41 O34
    Date: 2015–11

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