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Regulatory Compliance with Costly and Uncertain Litigation

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  • Mark Raymond

Abstract

Harrington (1988) and more recent papers by Heyes and Rickman (1999), Livernois and McKenna (1999), and Heyes (1996) have attempted to explain how a relatively large fraction of firms are thought to be in compliance with environmental regulations despite the fact that expected penalties for these violations are deemed rather low. This paper offers an alternative explanation for the interesting paradox by incorporating costly and uncertain litigation.

Suggested Citation

  • Mark Raymond, 2004. "Regulatory Compliance with Costly and Uncertain Litigation," Journal of Regulatory Economics, Springer, vol. 26(2), pages 165-176, September.
    • Handle: RePEc:kap:regeco:v:26:y:2004:i:2:p:165-176
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    Cited by:

    1. Dominic Mancini & Gregmar I. Galinato, 2008. "Was It Something I Ate? Implementation of the FDA Seafood HACCP Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 28-41.
    2. Vicki M. Bier & Shi‐Woei Lin, 2013. "Should the Model for Risk‐Informed Regulation be Game Theory Rather than Decision Theory?," Risk Analysis, John Wiley & Sons, vol. 33(2), pages 281-291, February.
    3. Cheng, Chu-Chuan & Lai, Yu-Bong, 2012. "Does a stricter enforcement policy protect the environment? A political economy perspective," Resource and Energy Economics, Elsevier, vol. 34(4), pages 431-441.
    4. Heather Eckert & Andrew Eckert, 2010. "The geographic distribution of environmental inspections," Journal of Regulatory Economics, Springer, vol. 37(1), pages 1-22, February.
    5. Tsaur‐Chin Wu & Ching‐Yang Liang & Kun‐Li Lin, 2022. "Environmental effectiveness of tax compliance policy in the presence of labor unions," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(2), pages 137-153, June.

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