Publications [#266973] of Tracy R. Lewis

Journal Articles

1. Lewis, TR; Sappington, DEM, Using decoupling and deep pockets to mitigate judgment-proof problems, International Review of Law and Economics, vol. 19 no. 2 (January, 1999), pp. 275-293, Elsevier BV [doi]
   (last updated on 2023/11/06)

   Abstract:
   We examine gow financial penalties for social damages can be structured to mitigate judgment-proof problems. These problems occur when a producer has insufficient wealth to compensate victims for the most serious damages that can arise from his activities. We demonstrate that a policy in which assessed penalties are decoupled from realized damages generally generates greater social surplus than does a policy of compensatory damages. We also show that a lender's deep pockets can generally be employed to mitigate judgment-proof problems, despite recent suggestions to the contrary in the literature. © 1999 Elsevier Science Inc.