On the consideration of potential harm in the award of punitive damages
Bharat Bhole () and
Jeffrey Wagner
Economics Bulletin, 2009, vol. 29, issue 2, 1102-1106
Abstract:
Multiple empirical studies find that juries/courts take account of potential harm in the determination of punitive damages. The received view in economic theory, however, is that punitive damages should not depend on potential harm. The purpose of this note is to provide an efficiency rationale for the courts'' behavior. Our particular result is that when the punitive damage multiplier decreases as the actual harm increases, the optimal multiplier does depend on the potential harm.
Keywords: Compensatory damages; potential harm; punitive damages (search for similar items in EconPapers)
JEL-codes: K1 K3 (search for similar items in EconPapers)
Date: 2009-05-22
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P57.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-09-00011
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().