In an economic perspective, punitive damages and class actions can be viewed as sharing a common economic function—creating optimal deterrence. Building on Parisi and Cenini (Class actions for Europe: perspectives from law and economics, ELGAR, 2010), we study the effect of alternative procedural regimes on the effectiveness of punitive damages and class actions. Specifically, we compare the workings of punitive damages and class actions in the American and English (“loser-pays”) regimes. Our findings help explain the limited use and late adoption of class actions and punitive damages in Europe.

Incentive effects of class actions and punitive damages under alternative procedural regimes / M.S. Cenini, B. Luppi, F. Parisi. - In: EUROPEAN JOURNAL OF LAW AND ECONOMICS. - ISSN 0929-1261. - 32:2(2011), pp. 229-240. [10.1007/s10657-011-9241-z]

Incentive effects of class actions and punitive damages under alternative procedural regimes

M.S. Cenini
Primo
;
2011

Abstract

In an economic perspective, punitive damages and class actions can be viewed as sharing a common economic function—creating optimal deterrence. Building on Parisi and Cenini (Class actions for Europe: perspectives from law and economics, ELGAR, 2010), we study the effect of alternative procedural regimes on the effectiveness of punitive damages and class actions. Specifically, we compare the workings of punitive damages and class actions in the American and English (“loser-pays”) regimes. Our findings help explain the limited use and late adoption of class actions and punitive damages in Europe.
punitive damages; class actions; loser-pays rule; incentives
Settore IUS/01 - Diritto Privato
Settore IUS/02 - Diritto Privato Comparato
2011
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/152999
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