nep-law New Economics Papers
on Law and Economics
Issue of 2023‒03‒20
eleven papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. (Sports) economics upside down? A comment on the Advocate General opinion in European Super League versus UEFA/FIFA By Budzinski, Oliver
  2. Market and Non-Market Determinants of Property Valuations decided through the Court System in Family Law Separation in Australia: Developing a Scientific Approach By Paloma Taltavull; Stanley McGreal; Tony McGough; Deborah Leshinsky
  3. Non-Marital Childbearing and Marital Property Laws: An Application of the WIHO Model By Shoshana Grossbard
  4. Cartel Damages Claims, Passing-On and Passing-Back By Garrod, Luke; Han, Tien-Der Jerry; Harvey, James; Olczak, Matthew
  5. Economic Sanctions and Trade Flows in the Neighbourhood By Bove, Vincenzo; Di Salvatore, Jessica; Nistico, Roberto
  6. Essays in economics of crime prevention and behavior under uncertainty By Mirzaoglu, Gulbike
  7. The Impact of the Organizational Design of Innovation Units on the Consideration of Cybersecurity By Heierhoff, Sebastian; Reher, Alina; Slamka, Jessica
  8. Tax and Occupancy of Business Properties: Theory and Evidence from UK Business Rates By Ben Lockwood; Martin Simmler; Eddy H.F. Tam; Benjamin Lockwood
  9. Non-Majoritarian Institutions - A Menace to Constitutional Democracy? By Voigt, Stefan
  10. Navigating the Paradox of Democracy and Military Control: An Analysis of an Imaginary Country's Political Landscape By Zaman, Khalid
  11. Border Apprehensions and Federal Sentencing of Hispanic Citizens in the United States By Simone Bertoli; Morgane Laouénan; Jérôme Valette

  1. By: Budzinski, Oliver
    Abstract: This comment addresses the opinion of the Advocate General (AG) of the European Court of Justice on the pending case European Super League versus UEFA/FIFA. It takes a critical perspective on selected aspects of the opinion's reasoning from a (sports) economics perspective. Highlighting the special characteristics of sports markets, the assessment of the AG Opinion raises questions such as (i) the (lack of) empirical evidence that the incumbent pursues and/or meets the legitimate objectives while the latter is still used as justifying reasons for anticompetitive conduct and arrangements (section III), (ii) the prohibitive entry barriers raised by the non-existence of a transparent and non-discriminatory authorization system preventing open competition for championships formats and organization by objective and effect (section IV), and (iii) the difficult search for a convincing theory of harm justifying the brutal enforcement of single-homing by the incumbent (section V).
    Keywords: European football, sports economics, antitrust, competition policy, Super League, Champions League, abuse of dominance, market power
    JEL: Z20 K21 L12 L40 L83
    Date: 2023
  2. By: Paloma Taltavull; Stanley McGreal; Tony McGough; Deborah Leshinsky
    Abstract: The family law courts in Australia are currently ill equipped to assess property valuations in regard to divorce. Judges face conflicts in the system, and there appears to be a lack of clarity regarding current market valuations. Judges look at valuations from both sides, resulting in outcomes that can be harmful to litigants and wasteful to society. While judges face the same valuation uncertainty as the parties themselves, expert witnesses will consequently continue to be called by the courts. This situation has prompted the interest in this study to evaluate the necessity for a review of court decisions.
    Keywords: Not always what you wish for - Post divorce and housing; Valuation and appraisal; Valuation Family law and divorce; Women and Housing and matrimonial home
    JEL: R3
    Date: 2022–01–01
  3. By: Shoshana Grossbard (San Diego State University)
    Abstract: This article analyzes choice between marital and non-marital childbearing based on a conceptual model that considers the repercussions of marriage laws for the individual wellbeing of women and men living in couples. Childbearing responses to changes in three marriage laws are evaluated: (1) the annulment of coverture laws in the second half of the 19th Century and the first part of the 20th Century; (2) a switch in legal regime used to attribute marital property (from a British system generally less protective of the property rights of lower-earning spouses to a regime of community property), and (3) changes in the availability of Common law marriage in addition to regular marriage. The model is based on a WIHO (Work-In-Household) model and assumes that individual women and men make decisions regarding production and reproduction.
    Keywords: marital and non-marital childbearing, coverture laws, common law marriage
    JEL: J12 J13 K36
    Date: 2023–02
  4. By: Garrod, Luke; Han, Tien-Der Jerry; Harvey, James; Olczak, Matthew
    Abstract: Firms can mitigate the harm of an input cartel by passing on some of the overcharge to their customers through raising their own prices. Recent claims for damages have highlighted that firms may also respond by negotiating lower prices with their suppliers of other complementary inputs, thereby passing back some of the harm upstream. By analysing a model where downstream supply requires two inputs, we derive the equilibrium `passing-on' and `passing-back' effects when one input is cartelised. We show that the cartel causes a larger passing-back effect when there is greater market power in the complementary input sector. This reduces the passing-on effect. We find that the passing-back effect can inflict substantial harm on the complementary input suppliers and reduce the harm inflicted on direct and/or indirect purchasers.
    Keywords: damages, cartel overcharge, pass-on, complements, negotiation
    JEL: D4 K21 L13 L40
    Date: 2023
  5. By: Bove, Vincenzo (University of Warwick); Di Salvatore, Jessica (University of Warwick); Nistico, Roberto (University of Naples Federico II)
    Abstract: We investigate the effect of economic sanctions on trade flows in countries sharing a border with sanctioned states. According to trade models, sanctions are expected to reduce trade flows as they disrupt established trading routes and economic relationships with suppliers and customers. However, there may also be instances where countries circumvent trade restrictions by clandestinely exchanging goods with sanctioned countries across the border and trading on their behalf, leading to an increase in imports and/or exports. To shed light on this issue, we employ a combination of large-N panel data analysis and comparative case studies using the synthetic control method. We find that, in the aggregate, neighbouring countries experience economic costs as sanctions disrupt trade. Yet, case studies uncover heterogeneity in countries' responses, with some cases exhibiting an increase in trade flows. We discuss possible explanations for these outcomes in the case-study analysis.
    Keywords: economic sanctions, trade, sanctions-busting, land neighbours, smuggling, synthetic control method
    JEL: F13 F14 F51 F52 K42
    Date: 2023–02
  6. By: Mirzaoglu, Gulbike (Tilburg University, School of Economics and Management)
    Date: 2023
  7. By: Heierhoff, Sebastian; Reher, Alina; Slamka, Jessica
    Abstract: Digital innovations are not only associated with opportunities for value creation but also lead to threats, for example, additional cybersecurity risks. Dealing with the conflicting requirements of innovations and cybersecurity can lead to a trade-off for organizations that companies setting up innovation units outside their core organization need to address. We conducted a cross-industry interview study to investigate the impact of organizational design of innovation units on the consideration of cybersecurity. Our results, embedded in Galbraith’s star model, reveal five types of innovation units and three patterns of organizational design that impact this consideration. The effect of these patterns ranges from an ill- or over-consideration to a cybersecurity-innovation equilibrium. Thereby, we extend the existing literature on the trade-off of innovation and cybersecurity by organizational design considerations regarding strategy, structure, and processes. This theoretical contribution has implications for the organizational design of innovation units in practice.
    Date: 2022–12–12
  8. By: Ben Lockwood; Martin Simmler; Eddy H.F. Tam; Benjamin Lockwood
    Abstract: We study the impact of commercial property taxation on vacancy rates and rents in the UK, using a new data-set, and exploiting exogenous variations in property tax rates from reliefs in the UK system: small business rate relief (SBRR), retail relief and empty property relief. We estimate that the retail relief reduces vacancies by 85%, and SBRR relief by up to 49%, while empty property exemption increases them by up to 89%. The effect of retail relief on clusters of urban properties (the “High St”) is no different to its overall effect. SBRR increases (decreases) the likelihood that a property is occupied by a small (large) business. We also use data on asking prices for rental properties to study the effect of reliefs on rental rates. Rental rates move in the opposite direction to vacancy rates, except in the case of empty property relief. All these findings are consistent with a novel model of directed search in the commercial property market, also presented in the paper.
    Keywords: commercial property, vacancy, occupancy, property taxation
    JEL: H25 H32 R30 R38
    Date: 2023
  9. By: Voigt, Stefan
    Abstract: Over the last couple of decades, non-majoritarian institutions (NMIs) have been introduced in many countries. Of late, they have been criticized as promoting technocracy to the detriment of democracy. A number of political scientists even argue that they would strengthen populists and be, hence, one reason for democratic backsliding. This paper does three things: It firstly briefly discusses the empirical evidence for the claim that NMIs have strengthened populists. It secondly argues that not all NMIs are born equal and therefore proposes a taxonomy enabling us to distinguish different types. And it finally discusses the question how the delegation of policy-making competence to experts can be legitimized relying on a specific version of social contract theory. To develop the argument, the interdependence cost calculus developed by Buchanan and Tullock (1962) is modified by explicitly including the respective decision-making procedure, distinguishing between direct democracy, representative democracy, and expert decision-making.
    Keywords: Nonmajoritarian institutions, constitutional democracy, technocracy, independent regulatory agencies, populism, social contract theory
    JEL: H11 K38 P51
    Date: 2023
  10. By: Zaman, Khalid
    Abstract: The rise of a military-led "deep state" is a global phenomenon that seriously threatens democratic governments everywhere. A hypothetical nation called "Sherwan" has a military-led "deep state" that controls the government, the economy, and the media. The military maintains its grip on power through a convoluted system of manipulation and compulsion, all while hiding its true nature behind the facade of democratic institutions. A combination of the military's dominance of political parties and the election process and the government's efforts to silence the media and civil society have made it difficult for the country's citizens to have confidence in the democratic system. There is no possibility of enforcing responsibility or monitoring, allowing the military-led deep state to function without restraint. The military's obsession with its preservation slows economic growth by diverting resources from defence and undercutting free-market ideals. This research delves into the numerous facets of the military-led deep state. It considers potential responses to the threats it presents to democratic governance, open government, and the rule of law. This research, which uses the made-up nation of Sherwan as an example, sheds light on the workings of a military-led deep state and offers suggestions for combating it to promote freer, more democratic societies.
    Keywords: Military-led deep state; Fantasy country; Conspiracy theories; Power game; Challenges; Solutions.
    JEL: K42
    Date: 2023–01–11
  11. By: Simone Bertoli (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, IRD - Institut de Recherche pour le Développement, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics); Morgane Laouénan (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Jérôme Valette (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, UP1 - Université Paris 1 Panthéon-Sorbonne, IC Migrations - Institut Convergences Migrations [Aubervilliers])
    Abstract: We provide evidence that Hispanic citizens receive significantly longer sentences than non-Hispanic citizens in the Federal Criminal Justice System in the United States when a higher number of illegal aliens are apprehended along the southwest border. Apprehensions can increase the salience of Hispanic ethnic identity, which is associated with persistent negative stereotypes, and can also deteriorate attitudes toward Hispanics. We rule out concerns that apprehensions might be conveying legally relevant information to judges. Thus, we provide direct evidence for timevarying discrimination toward Hispanic defendants. Our estimated effect is only at play for defendants without a heavy previous criminal record.
    Keywords: Immigration, Ethnic identity, Discrimination, Attitudes, Salience, Sentences
    Date: 2023–01–20

This nep-law issue is ©2023 by Eve-Angeline Lambert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.