Corporate Contracting Around Defective Regulations: The Daimler-Chrysler Case

Theodor Baums

Journal of Institutional and Theoretical Economics (JITE), 1999, vol. 155, issue 1, 119-

Abstract: This paper describes the legal structure of the Daimler-Chrysler merger. It asks why this specific structure rather than another cheaper way was chosen. This leads to the more general question of the pros and cons of mandatory corporate law as a regulatory device. The article advocates an "optional" approach: The legislator should offer various menus or sets of binding rules among which the parties may choose.

JEL-codes: G32 G34 (search for similar items in EconPapers)
Date: 1999
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