IDEAS home Printed from https://ideas.repec.org/a/eee/irlaec/v31y2011i4p249-255.html
   My bibliography  Save this article

Welfare enhancing regulation exemptions

Author

Listed:
  • Mungan, Murat C.

Abstract

Sanctions for regulation violations are used to deter conduct which could potentially result in great social harms. This practice over-deters low-risk entities and under-deters high-risk entities, which leads to social losses. This paper analyzes whether and how such social losses can be mitigated. I show that this can be achieved by allowing regulatees to purchase passes exempting them from regulations at appropriate prices, although they remain liable for any harm they cause.

Suggested Citation

  • Mungan, Murat C., 2011. "Welfare enhancing regulation exemptions," International Review of Law and Economics, Elsevier, vol. 31(4), pages 249-255.
    • Handle: RePEc:eee:irlaec:v:31:y:2011:i:4:p:249-255
    DOI: 10.1016/j.irle.2011.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0144818811000408
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irle.2011.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shavell, Steven, 1990. "Deterrence and the Punishment of Attempts," The Journal of Legal Studies, University of Chicago Press, vol. 19(2), pages 435-466, June.
    2. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    3. Shavell, Steven, 1991. "Specific versus General Enforcement of Law," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1088-1108, October.
    4. Mungan, Murat C., 2010. "Repeat offenders: If they learn, we punish them more severely," International Review of Law and Economics, Elsevier, vol. 30(2), pages 173-177, June.
    5. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    6. Shavell, S., 1986. "The judgment proof problem," International Review of Law and Economics, Elsevier, vol. 6(1), pages 45-58, June.
    7. repec:bla:jecsur:v:11:y:1997:i:3:p:267-95 is not listed on IDEAS
    8. Shavell, Steven, 1993. "The Optimal Structure of Law Enforcement," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 255-287, April.
    9. Kaplow, Louis & Shavell, Steven, 1994. "Optimal Law Enforcement with Self-Reporting of Behavior," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 583-606, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mungan, Murat C., 2012. "Don’t Say You’re Sorry Unless You Mean It: Pricing apologies to achieve credibility," International Review of Law and Economics, Elsevier, vol. 32(1), pages 178-187.
    2. Mungan, Murat C., 2017. "Reducing crime through expungements," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 398-409.
    3. Gilles Grolleau & Murat C. Mungan & Naoufel Mzoughi, 2022. "Letting offenders choose their punishment?," Kyklos, Wiley Blackwell, vol. 75(4), pages 607-617, November.
    4. Gilles Grolleau & Murat Mungan & Naoufel Mzoughi, 2022. "Letting Offenders Choose Their Own Punishment ?," Post-Print hal-03694337, HAL.
    5. Humphery-Jenner, Mark, 2012. "The impact of the EU takeover directive on takeover performance and empire building," Journal of Corporate Finance, Elsevier, vol. 18(2), pages 254-272.
    6. Miller, Amalia R. & Eibner, Christine & Gresenz, Carole Roan, 2013. "Financing of employer sponsored health insurance plans before and after health reform: What consumers don’t know won’t hurt them?," International Review of Law and Economics, Elsevier, vol. 36(C), pages 36-47.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anna Rita Germani, 2007. "The Environmental Enforcement in the Civil and the Common Law Systems. A Case on the Economic Effects of Legal Institutions," Quaderni DSEMS 22-2007, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    2. Bowles, Roger & Faure, Michael & Garoupa, Nuno, 2000. "Economic analysis of the removal of illegal gains," International Review of Law and Economics, Elsevier, vol. 20(4), pages 537-549, December.
    3. Feess, Eberhard & Sarel, Roee, 2022. "Optimal fine reductions for self-reporting: The impact of loss aversion," International Review of Law and Economics, Elsevier, vol. 70(C).
    4. Friehe, Tim & Tabbach, Avraham, 2013. "Preventive enforcement," International Review of Law and Economics, Elsevier, vol. 35(C), pages 1-12.
    5. Polinsky, A. Mitchell & Shavell, Steven, 2007. "The Theory of Public Enforcement of Law," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 1, chapter 6, pages 403-454, Elsevier.
    6. Mungan, Murat C., 2012. "Don’t Say You’re Sorry Unless You Mean It: Pricing apologies to achieve credibility," International Review of Law and Economics, Elsevier, vol. 32(1), pages 178-187.
    7. Mungan Murat C., 2013. "Optimal Warning Strategies: Punishment Ought Not to Be Inflicted Where the Penal Provision Is Not Properly Conveyed," Review of Law & Economics, De Gruyter, vol. 9(3), pages 303-339, November.
    8. A. Mitchell Polinsky & Steven Shavell, 2009. "Public Enforcement of Law," Chapters, in: Nuno Garoupa (ed.), Criminal Law and Economics, chapter 1, Edward Elgar Publishing.
    9. A. Mitchell Polinsky & Steven Shavell, 2005. "Economic Analysis of Law," Discussion Papers 05-005, Stanford Institute for Economic Policy Research.
    10. Goeschl, Timo & Jürgens, Ole, 2012. "Explaining uniformity in rule design: The role of citizen participation in enforcement," International Review of Law and Economics, Elsevier, vol. 32(1), pages 166-177.
    11. Ulrich Blum & Nicole Steinat & Michael Veltins, 2008. "On the rationale of leniency programs: a game-theoretical analysis," European Journal of Law and Economics, Springer, vol. 25(3), pages 209-229, June.
    12. Giovanni Immordino & Marco Pagano, 2010. "Legal Standards, Enforcement, and Corruption," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1104-1132, September.
    13. Lisa R. Anderson & Gregory DeAngelo & Winand Emons & Beth Freeborn & Hannes Lang, 2017. "Penalty Structures And Deterrence In A Two-Stage Model: Experimental Evidence," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1833-1867, October.
    14. Nøstbakken, Linda, 2008. "Fisheries law enforcement--A survey of the economic literature," Marine Policy, Elsevier, vol. 32(3), pages 293-300, May.
    15. Éric Langlais, 2010. "Les criminels aiment-ils le risque ?," Revue économique, Presses de Sciences-Po, vol. 61(2), pages 263-280.
    16. Parikshit Ghosh, 2009. "Making the Punishment Fit the Crime or Taliban Justice? Optimal Penalties Without Commitment," Working papers 175, Centre for Development Economics, Delhi School of Economics.
    17. Christian Growitsch & Nicole Nulsch & Margarethe Rammerstorfer, 2012. "Preventing innovative cooperations: the legal exemptions unintended side effect," European Journal of Law and Economics, Springer, vol. 33(1), pages 1-22, February.
    18. Garoupa, Nuno & Stephen, Frank, 2003. "A Note on Optimal Law Enforcement with Legal Aid," CEPR Discussion Papers 4113, C.E.P.R. Discussion Papers.
    19. Germani, Anna Rita & Morone, Andrea & Morone, Piergiuseppe, 2009. "Investigating Discretionary Environmental Enforcement: a pilot experiment," MPRA Paper 12735, University Library of Munich, Germany.
    20. Yahagi, Ken & Yamaguchi, Yohei, 2023. "Law enforcement with rent-seeking government under voting pressure," International Review of Law and Economics, Elsevier, vol. 73(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:irlaec:v:31:y:2011:i:4:p:249-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/irle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.