|
on Law and Economics |
| By: | Daria Denti (Gran Sasso Science Institute); Marco Di Cataldo (Ca' Foscari University of Venice) |
| Abstract: | Being strongly related to certainty of punishment, efficient justice is expected to matter more than the severity of punishment in deterring crimes. However, the evidence supporting this perspective is scarce. This paper estimates the effect of a reform of the criminal justice system that took place in Italy in 2012, evaluating its impact on justice efficiency and crime deterrence. Event study and difference-in-difference estimates reveal that the reform significantly improved the efficiency of criminal courts and deterred property crimes and organised crimes, while violent crimes were not affected. These results support the idea that the deterrence effect of justice efficiency applies particularly to “rational†crimes, while criminals acting under impulsive and less-rational circumstances do not internalise information about justice in their decision-making |
| Keywords: | crime, justice, justice efficiency, deterrence, Italy. |
| JEL: | K14 K42 P43 Z18 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp47 |
| By: | Patrice Bougette (Université Côte d'Azur, CNRS, GREDEG, France); Frédéric Marty (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This paper examines the interplay between transport and competition law within the EU, particularly focusing on case law in the context of liberalization. The transport sector, marked by natural monopolies, often requires specific regulation alongside competition law to address issues like exclusionary practices by incumbents. Despite liberalization efforts, dominant players may still hinder competition through control of essential infrastructure. The entry discusses legal and regulatory strategies to ensure fair market access and competition and considers broader socio-economic impacts such as regional development and environmental sustainability. |
| Keywords: | Competition Law, Liberalization, Natural Monopolies, Essential Infrastructure, Vertical Integration, Regulatory Frameworks |
| JEL: | L41 L43 K21 L51 R48 L92 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-28 |
| By: | Britto, Diogo (University of Milan Bicocca); Daniele, Gianmarco (Bocconi University); Le Moglie, Marco (Bocconi University); Pinotti, Paolo (Bocconi University); Sampaio, Breno (Universidade Federal de Pernambuco) |
| Abstract: | We study the prevalence and effects of individuals with past criminal charges among candidates and elected politicians in Brazil. Individuals with past criminal charges are twice as likely to both run for office and be elected compared to other individuals. This pattern persists across political parties and government levels, even when controlling for a broad set of observable characteristics. Randomized anti-corruption audits reduce the share of mayors with criminal records, but only when conducted in election years. Using a regression discontinuity design focusing on close elections, we demonstrate that the election of mayors with criminal backgrounds leads to higher rates of underweight births and infant mortality. Additionally, there is an increase in political patronage, particularly in the health sector, which is consistent with the negative impacts on local public health outcomes. |
| Keywords: | politicians, crime, audits, policies, patronage |
| JEL: | K42 J45 P16 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17328 |
| By: | Jeanne Mouton (Université Côte d'Azur, CNRS, GREDEG, France; European Commission); Benoit Rottembourg (Inria, Regalia) |
| Abstract: | In a global context where competition authorities are investigating and sanctioning Amazon's marketplace for practices of self-preferencing at the expense of their business users and consumers (Italian AGCM 2021, EU Commission 2022, UK CMA 2024, US FTC on-going since 2023), we observe a trend of imposing remedies on dominant players in digital markets. In addition, the Digital Market Act, shifting from an ex-post enforcement approach to ex-ante obligations on designated gatekeepers, is strengthening auditing power over these gatekeepers, which risk heavier penalties in the event of non-compliance. Therefore, competition authorities and regulators need tools to audit the compliance of these dominant players in the e-commerce sector over the obligations and remedies they are imposing on dynamic, and personalized algorithms. Most of these algorithms embed Machine-Learning components, introducing opacity and potentially biases in the decision-making process. The aim of the paper is to explore the benefits of using black-box auditing techniques to provide insights into the behavior of these online algorithms. We anchor our research in the literature of product prominence from vertically integrated players, of choice ranking, and of the specific literature related to Amazon search ranking, automatic pricing and Buy Box 's algorithms. Through a study of the pricing and ranking of several thousand products on Amazon, from 2017 to 2023, we illustrate the potential of surrogate models. While our dataset only covers some categories on Amazon.fr, the large number of competitions allowed us to demonstrate, with a 94% accuracy, that the variable is Amazon, or variables correlated to it, had a positive effect on winning Buy Box before mid-2022, and that this positive effect has decreased after mid-2022. In our research, the machine learnings models revealed a significantly higher degree of accuracy and sensitivity compared to a logistic regression, opening the discussion on the added value and role of surrogate models based on machine learning techniques in guiding the auditor, as well as raising the question of their probative value in the regulatory context. |
| Keywords: | algorithms, ranking algorithms, digital markets, online marketplace, competition law, audit, machine learning |
| JEL: | K21 L41 L51 L81 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-27 |
| By: | Kurdoglu, Berkay |
| Abstract: | This study explores the critical role of market definition in antitrust and competition law, where defining the relevant market is fundamental for assessing competition between firms, products, and markets. Traditional methods for market definition, such as the SSNIP test, Critical Loss Analysis, and cross-elasticity of demand, rely on econometric models to evaluate substitutability and price sensitivity. However, these models face limitations, including challenges with endogeneity, data requirements, and the time-consuming nature of the process. Given these constraints, there is a growing interest in more efficient, data-driven approaches. This research delves into the use of clustering algorithms as a modern tool to enhance market definition in antitrust cases. By leveraging these advanced methods, the study aims to offer new insights into competitive landscapes and the evolving dynamics of market structures, contributing to a deeper understanding of rivalry relationships in both traditional and digital marketplaces. |
| Keywords: | Antitrust, Competition law, Market definition, Clustering algorithm |
| JEL: | D40 K21 L4 |
| Date: | 2023–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122340 |
| By: | Sigurd S. Arntzen; Jon H. Fiva; Rune J. Sørensen |
| Abstract: | This paper assesses the effectiveness of democratic systems in preventing individuals with criminal backgrounds from holding political office. Unlike many countries, Norway has no legal restrictions against felons running for office. We analyze local election candidates from 2003 to 2019, paired with administrative records of criminal offenses. We demonstrate that individuals with criminal records are systematically penalized at every stage of their political careers. Candidates are less likely to have criminal records than the general population, with elected officials less likely to have criminal backgrounds than their unelected peers, and mayors being the most lawful. Through a series of counterfactual exercises, we demonstrate that the most significant reduction in criminal involvement occurs at the nomination stage, especially within established local party organizations. |
| Keywords: | political selection, criminal backgrounds, voter behaviour, political parties |
| JEL: | D72 D73 J24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11412 |
| By: | Elisabetta Calabresi |
| Abstract: | The paper investigates the dynamic effects of unilateral divorce legalization on intimate partner violence (IPV) in Mexico, building upon existing evidence. It adopts a heterogenous-robust event study, leveraging data from a repeated cross-sectional survey and exploiting the staggered implementation of the reform across Mexican states. The policy led to a 7.2% increase in physical IPV in the medium term, specifically between 5 to 9 years after its introduction. No significant effects were observed in shorter or longer time frames, nor on other forms of IPV. The main findings are robust across various sensitivity analyses, addressing implementation date discrepancies, potential confounders, and alternative estimation methods. The rise in physical IPV is primarily driven by women who remained married, with suggestive evidence indicating both a backlash effect and an instrumental use of violence. The analysis contributes to the literature by looking at long-term impacts, increasing the external validity of shorter-run effects, adopting a new methodology, and deeply investigating the underlying mechanisms. Overall, it underscores the importance of addressing gender norms together with enhancing women's outside options. |
| Keywords: | unilateral divorce; intimate partner violence; heterogenous-robust event study; Mexico |
| JEL: | J12 I18 K36 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_17.rdf |
| By: | Nicola Giannelli (Department of Economics, Society & Politics, Università di Urbino Carlo Bo) |
| Abstract: | This paper examines the European Union's (EU) policy design for regulating Artificial Intelligence (AI), highlighting the comprehensive legislative approach adopted to balance innovation with the protection of fundamental rights. The EU’s AI Act and preceding regulatory efforts emphasize defining AI with flexibility and precision, ensuring transparency, and promoting trustworthiness. Central to this regulatory framework is the emphasis on human agency, technical robustness, privacy, transparency, and accountability. Military and academic use of AI is out of its scope.The paper explores the EU’s dual focus on economic growth and citizen protection, showcasing the role of the High-Level Expert Group on Artificial Intelligence (AI HLEG) in shaping ethical guidelines and management processes. By building on existing legislative frameworks, the EU addresses emerging risks and ethical dilemmas, ensuring that AI development aligns with societal values and public trust.1 The approach of the proposal is Risk-Based on the side human protection and market building on the side of innovation. The bill is 459 pages Act of Parliament that cannot be enforced without a lot of help from legal services. This should come a network of regulatory agencies, one for each member state, with an AI Office of the Commission at the European Level. Sandboxes that want to simulate the compliance of any new system with regulation framework will become necessary, like other legal counseling, for firms that want to avoid to be blocked in a Kafkian procedure. |
| Keywords: | Artificial Intelligence; European Union; Regulation Policy; Risk Management |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:urb:wpaper:24_02 |
| By: | Ubaldi, Michele; Picchio, Matteo |
| Abstract: | We study the effect of mass shooting exposure on individuals' mental health by using the Panel Study of Income Dynamics. Our identification strategy relies on the quasi-randomness of mass shootings in a staggered difference-in-differences design. We compare changes in mental health outcomes of individuals living in affected cities with changes of matched individuals living in non-proximal and not affected cities. We find that mass shootings have a substantial adverse impact on mental health, which persists for up to six years. This impact is not statistically significant for Black individuals, whereas it is slightly more pronounced among women and older cohorts. |
| Keywords: | Mass shooting, mental health, difference-in-differences, dynamic effect |
| JEL: | C23 I18 K14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1510 |