American Law and Economics Association
Fifteenth Annual Meeting
May 6-7, 2005

New York University School of Law
40 Washington Square SouthNew York, New York 10012

American Law and Economics Association 2004-2005
Officers
President: Henry B. Hansmann, Yale Law School
Vice President/President-Elect: Daniel L. Rubinfeld, University of California (Berkeley)
Secretary-Treasurer: Oliver Hart, Harvard University
Board of Directors
Class of 2005
Louis Kaplow, Harvard University
Paul G. Mahoney, University of Virginia
Eric Rasmusen, Indiana University
Susan Rose-Ackerman, Yale University
Class of 2006
John Coates, Harvard University
Theodore Eisenberg, Cornell University
Avery Wiener Katz, Columbia University
Lynn A. Stout, University of California (Los Angeles)
Class of 2007
Howard F. Chang, University of Pennsylvania
Roberta Romano, Yale University
Kathryn E. Spier, Northwestern University
George G. Triantis, University of Virginia

Nominating Committee

Program Committee

Theodore Eisenberg
Susan Rose-Ackerman
Lynn Stout

Henry B. Hansmann
Avery Wiener Katz
George Triantis

Editors of the American Law and Economics Review
Orley Ashenfelter of Princeton University
Richard A. Posner of U.S. Court of Appeals, 7th Circuit
Executive Secretary
Karen G. Crocco
Area Organizers for the 2005 Annual Meeting
Lucian Bebchuk
Robert Cooter
Lee Anne Fennell
Gillian Hadfield
Howell Jackson
Jason Johnston
Christine Jolls
Daniel Kessler
Lewis Kornhauser
Paul Mahoney
Ronald Mann

Francesco Parisi
Randall Picker
A. Mitchell Polinsky
Eric Rasmusen
Roberta Romano
Alan Schwartz
Daniel Shaviro
Kathryn Spier
Rip Verkerke
Michelle White
Luigi Zingales

Friday, May 6(All sessions to be held at the Law School, unless otherwise noted)(Author's name in bold indicates person presenting paper)

8:00 - 8:45:

Registration and Continental Breakfast (Greenberg Lounge)

8:45 - 9:00:

Welcome (Greenberg Lounge)
Dean Richard Revesz

9:00 - 10:30:Session I:

Panel IA:

Administrative Law (Room 210)

Panel Chair:

Jason Johnston

Marcel Boyer and Donatella Porrini, "Sharing Liability Between Banks andFirms: the Case of Industrial Safety Risk"
Dean Lueck, "The Organization and Behavior of Bureaucracy: An Empirical
Study of State Wildlife Agencies"
Jonathan Nash and Richard Revesz, "The Law and Economics of New Source
Review"

Panel IB:

Bankruptcy I (Room 326)

Panel Chair:

Steven Schwarcz

John Armour and Douglas J. Cumming, “Bankruptcy Law and Entrepreneurship”
Rainer F. Haselmann, Katharina Pistor, and Vikrant Vig, “Bankruptcy Legislation
and Banking Behavior: Evidence From Transition Economies”
Michelle J. White, "A General Model of Personal Bankruptcy"

Panel IC:

Behavioral I (Room 212)

Panel Chair:Peter Huang

Oren Bar-Gill, "Pricing Legal Options: A Behavioral Perspective"
Troy Allan Paredes, "Too Much Pay, Too Much Deference: Behavioral
Corporate Finance, CEOs, and Corporate Governance"
Lauren E. Willis, "Decisionmaking & the Limits of Disclosure: The Problem ofPredatory Lending"Friday, May 6 (cont.)
Panel ID:

Contracts I (Room 214)

Panel Chair:

Gillian HadfieldOliver Hart and John Moore, “Agreeing Now to Agree Later: Contracts that Ruleout but do not Rule In”
Lewis A. Kornhauser and W. Bentley MacLeod, “Contingency and Control: A
Theory of Contracts”
Richard A. Posner, “Contract Interpretation”

10:30 - 10:45:

Coffee Break (Greenberg Lounge)

10:45 - 12:15:

Session II:

Panel IIA: Corporate I (Room 212)
Panel Chair:

Alan Schwartz

Lucien Bebchuk, Alma Cohen and Allen Ferrell, "What Matters in Corporate
Governance?"
Robert Daines and Charles Jones, "Mandatory Disclosure, Asymmetric Informationand Liquidity: The Impact of the 1934 Act"
Robert Daines, Vinay Nair, and Lewis Kornhauser, “The Good, the Bad and theLucky: CEO Pay and Skill"

Panel IIB: International (Room 326)
Panel Chair:Francesco Parisi

George Norman and Joel P. Trachtman, "The Customary International Law
Game"
Jide O. Nzelibe, "A Positive Theory of the Wars Power Constitution"
Andrew Green, "Trade Rules and Climate Change"

Friday, May 6 (cont.)
Panel IIC: Property I (Room 210)
Panel Chair:

Vicki Been

Kevin E. Davis and Catherine Hafer, "Equality for the Sake of Efficiency:
Economic Implications of Unequal Protection of Property Rights"
Ingrid Gould Ellen and Ioan Voicu, "Nonprofit Housing and Neighborhood
Spillovers"
Caspar Rose, "The Transfer of Property Rights by Theft: An Economic Analysis"

Panel IID: Torts I (Room 214)
Panel Chair:

Eric Helland

Omri Ben-Shahar, "How Liability Distorts the Incentives of Manufacturers to
Recall Products"
Robert D. Cooter and Ariel Porat, "Total Liability for Excessive Harm"
Nicola Gennaioli and Andrei Shleifer, "The Evolution of Precedent""

12:15 - 1:30:

Lunch (Greenberg Lounge)

1:30 - 3:00:

Session III:

Panel IIIA: Antitrust (Room 210)
Panel Chair:

M. Todd Henderson

Edward M. Iacobucci, "Revisiting the Law and Economics of Franchise Tying
Contracts,"
Benjamin Klein and Joshua D. Wright, "The Economics of Slotting
Arrangements,"
Daniel F. Spulber and Christopher S. Yoo, "On the Regulation of Networks as
Complex Systems,"

Friday, May 6 (cont.)
Panel IIIB: Criminal I (Room 212)
Panel Chair:

A. Mitchell Polinsky

Massimo d’Antoni and Roberto Galbiati, "Deterrence and Information: theOptimal Use of Monetary and Nonmonetary Sanctions Revisited"
Philip A. Curry and Steeve Mongrain, "Cheating in Rank-Order Tournaments"
Henrik Lando "Does Wrongful Conviction Lower Deterrence?"

Panel IIIC: Law and Politics I (Room 214)
Panel Chair:

Lewis Kornhauser

Tonja Jacobi, "Explaining American Litigiousness: a Product of Politics, Not justLaw"
Robert Mikos and Cindy Kam, "The Impact of Federalism on Citizen Support forLegislative Action"
Justin J. Wolfers, "Are Voters Rational? Evidence from Gubernatorial Elections"

Panel IIID: Procedure I (Room 326)
Panel Chair:

Hillary Sale

Stephen Choi, “Do the Merits Matter Less After the Private Securities Litigation
Reform Act”
Vincy Fon and Francesco Parisi, “Judicial Precedents in Civil Law Systems: A
Dynamic Analysis”
Jonathan Klick and Eric Helland, “The Effect of Judicial Expediency on Attorney
Fees in Class Actions”

3:00 - 3:15: Coffee Break (Greenberg Lounge)

Friday, May 6 (cont.)
3:15 - 4:45: Session IV:
Panel IVA: Comparative Corp (Room 326)
Panel Chair:

Roberta Romano

Howell E. Jackson, "Variation in the Intensity of Financial Regulation"
Ehud Kamar, "Beyond Competition for Incorporations"
Steven A. Bank, Brian R. Cheffins, and Marc Goergen, "Dividends and Politics"

Panel IVB: Contracts II (Room 214)
Panel Chair:

Omri Ben-Shahar

George Geis, “Empirically Assessing Hadley v. Baxendale”
Nicholas L. Georgakopoulos, “Contract-Centered Veil Piercing”
Eric Posner, “There Are No Penalty Default Rules in Contract Law”

Panel IVC: Intellectual Property I (Room 212)
Panel Chair:

Ronald Mann

Joseph P. Cook, "On Understanding the Increase in US Patent Litigation"
Alan C. Marco, "Strategic Patent Extension in Pharmaceuticals: Evidence from
Patent and Pricing Data"
Michael Meurer and James Bessen, "The Patent Litigation Explosion"

Panel IVD: Welfare/Family/Labor I (Room 210)
Panel Chair:

Margaret Brinig

Betsey A. Stevenson and Justin J. Wolfers, "Divorce Laws and Family Distress"
Amy Wax, "Is the Family Friendly Workplace Possible?"
Abraham L. Wickelgren,"Why Divorce Laws Matter: Incentives for Marital
Investments under Unilateral and Consent Divorce”

Friday, May 6 (cont.)

5:30-6:45:

Cocktails in the Martin Lipton Hall

7:00:

Dinner (also in the Martin Lipton Hall)
Speaker: Daniel Rubinfeld of the University of California, Berkeley

Saturday, May 7
8:00-9:00:

Continental Breakfast (Greenberg Lounge)

9:00-10:30: Session V:
Panel VA:

Bankruptcy II (Room 326)

Panel Chair:

Theodore Eisenberg

Philip Bond, "Debt Restructuring and Voting Rules"
M. Todd Henderson, "CEO Compensation in Bankruptcy: Theory & Evidence"
Edward R. Morrison and Douglas G. Baird, "Serial Entrepreneurs and Small
Business Bankruptcies"

Panel VB:

Behavioral II (Room 214)

Panel Chair:

Christine Jolls

Claire Hill and Erin O'Hara, “Optimal Trust”
Paul Pecorino and Mark van Boening, “Fairness in an Embedded Ultimatum
Game”
Charles R. Plott and Kathryn Zeiler, "Asymmetrics in Exchange Behavior
Incorrectly Interpreted as Evidence of Prospect Theory”

Panel VC:

Corporate II (Room 210)

Panel Chair:

Luigi Zingales

Dhammika Dharmapala and Mihir Desai, "Corporate Tax Avoidance and FirmValue"
Zohar Goshen and Gideon Parchomovsky, "The Essential Role of Securities
Regulation"
Stephen M. Horan and D. Bruce Johnsen, “Do Third Party Payments Benefit thePrincipal: The Case of Soft Dollar Brokerage?”Saturday, May 7 (cont.)

Panel VD:

Criminal II (Room 216)

Panel Chair:John Donohue

Radha Iyengar, "I'd Rather Be Hanged for a Sheep than a Lamb: the Unintended
Consequences of California's Three Strikes Law"
Robert L. Scharff and Daniel Polsby, "A Deadly Solution: Crack, Homicide, andthe Decline of Crime in America"
Joanna M. Shepherd, "Deterrence versus Brutalization: Capital Punishment’s
Differing Impacts Among States”

Panel VE:

Law and Development (Room 212)

Panel Chair:

Robert Cooter

Bernard S. Black, Hasung Jang, and Woochan Kim, "Predicting Firms' Corporate
Governance Choices: Evidence from Korea"
Alexander Dyck, David Moss, and Luigi Zingales, "Media versus SpecialInterests"
Andrew Guzman and Beth A. Simmons, "Power Plays & Capacity Constraints:
The Selection of Defendants in WTO Disputes""

10:30-10:45:

Coffee Break (Greenberg Lounge)

10:45-12:15:

Session VI:

Panel VIA: Procedure II (Room 210)
Panel Chair:

Kathryn Spier

Niko Matouschek and Ricardo Alonso, “Optimal Delegation.”
Chris William Sanchirico, “Harnessing Adversarial Process: Optimal
Complementarities in Evidence”
Watanabe Yasutora, “Learning and Bargaining in Dispute Resolution: Theoryand Evidence from Medical Malpractice Litigation”

Saturday, May 7 (cont.)
Panel VIB: Property II (Room 212)
Panel Chair:

Lee Fennell

Jonathan R. Nash, "Packaging Property: The Effect of Paradigmatic Framing of
Property Rights”
Robert H. Sitkoff and Max M. Schanzenbach, “Jurisdictional Competition for
Trust Funds: An Empirical Analysis of Perpetuities and Taxes”
Henry E. Smith, "Self-Help and the Nature of Property"

Panel VIC: Social Norms (Room 214)
Panel Chair:

Eric Rasmusen

Peter C. Mayer, “Property Rights and Resource Management among NonhumanSpecies”
Lior J. Strahilevitz, "A Social Networks Theory of Privacy"
Doron Teichman, "Sex, Shame, and the Law: An Economic Perspective on
Megan's Laws”

Panel VID: Torts II (Room 326)
Panel Chair:

Michelle White

Praveen Dhankar, M. Mahmud Khan and Ila M. Semenick Alam, “The Threat ofMalpractice Lawsuit, Physician Behavior, and Health Outcomes: Testing thePresence of Defensive Medicine”
Theodore Eisenberg, Michael Heise and Martin T. Wells, “Judges, Juries andPunitive Damages: Empirical Analysis using the National Center for State Court
1992, 1996, and 2001 Data”
Paul Fenn and Neil Rickman, “Medical Malpractice: Legal Liability and Timingof Settlement”

Saturday, May 7 (cont.)
Panel VID: Welfare/Family/Labor II (Room 216)
Panel Chair:

J. Hoult (Rip) Verkerke

Howard F. Chang, "Cultural Communities in a Global Labor Market:
Immigration Restrictions as Residential Segregation”
Daniel E. Ho, "Evaluating Affirmative Action in American Law Schools: Does
Attending a Better Law School Cause Black Students to Fail the Bar?”
Christine M. Jolls, "Law's Transformative Effects on Unconscious Bias”

12:15-1:30: Lunch (Greenberg Lounge)

1:30 - 3:00: Session VII:
Panel VIIA: Banking (Room 326)
Panel Chair:

Howell Jackson

Anup Agrawal and Mark A. Chen, "Do Analysts Conflicts Matter? Evidence from
Stock Recommendations”
Thomas J. Miles, “Risk-Taking and Funding Adequacy of Defined BenefitPensions”
Jonathan Klick and Thomas Stratmann, “Effects of Insurance Mandates on theBehavior Diabetics”

Panel VIIB: Contracts III (Room 214)
Panel Chair:

Eric Talley

Richard J. Ball, “Contract Dispute Resolution as a Private Good
Richard Brooks, “Credit Where it is Due”
Barak Richman, “Community Institutions”

Saturday, May 7 (cont.)
Panel VIIC: Criminal III (Room 216)
Panel Chair:

Steven Shavell

Oren Bar-Gill and Oren Gazal, "Plea Bargains Only for the Guilty"
David Bjerk, "Guilt Shall Not Escape nor Innocence Suffer: A Theory of Optimal
Prosecutor Behavior when Defendant Guilt Is Uncertain"
Alon Klement and Alon Harel, "The Economics of Shame: Why less Shame isBetter than More"

Panel VIID: Intellectual Property II (Room 212)
Panel Chair:

Michael Meurer

Ariel Katz, “Intellectual Property, Antitrust, and the Presumption of Market
Power: Making Sense of Alleged Nonsense”
Jay P. Kesan and Andres A. Gallo, "The Market for Private Dispute Resolution
Services: An Empirical Re-Assessment of ICANN/UDRP Performance"
Eric Bennett Rasmusen, "An Economic Approach to the Ethics of Copyright
Violation"

Panel VIIE: Tax (Room 210)
Panel Chair:

Daniel Shaviro

Louis Kaplow, "Optimal Income Transfers"
Stéphane Mechunlan and Jasmin Kantarevic, "The Impact of the Tax Exemption
for Dependents and Marital Fertility Revisited”
Jacob Nussim and Avraham Tabbach, “Deterrence and the Tax Treatment ofMonetary Sanctions and Litigation Costs”

3:00 - 3:!5: Coffee Break (Greenberg Lounge)

Saturday, May 7 (cont.)
3:15 - 4:45: Session VIII:
Panel VIIIA: Behavioral III (Room 216)
Panel Chair:

Alicia Davis Evans

Dhammika Dharmapala, Nuno Garoupa, and Richard H. McAdams, "The Just
World Bias and Hate Crime Statutes”
J.J. Prescott, “Measuring the Consequences of Jury Trial Protections”
Alan Schwartz, "How Much Irrationality Does the Market Permit?"

Panel VIIIB: Corporate III (Room 210)
Panel Chair:

Paul MahoneyHenry Hu and Bernard Black, "Empty Voting: Shareholder Voting Rights andCoupled Assets”
James C. Spindler, "IPO Liability and Entrepreneurial Response"Mark Ira Weinstein, "Don’t Leave Home Without It: Limited Liability andAmerican Express"

Panel VIIIC: Health and Nonprofits (Room 326)
Panel Chair:

Kristin Madison

David A. Hyman and Charles Silver, "The Poor State of Health Care Quality in theU.S.: Is Malpractice Liability Part of the Problem or Part of the Solution?"
Anup Malani and Albert H. Choi, "Are Non-Profit Firms Simply For-Profits in
Disguise? Evidence from Executive Compensation in the Nursing Home Industry"
Ronen Avraham, "Solutions for Collective Action Problems in the Provision ofEfficient Health Care"

Saturday, May 7 (cont.)

Panel VIIID: Law and Politics II (Room 212)
Panel Chair:

Michael Trebilcock

Eric Posner and Miguel de Figueiredo, "Is the International Court of Justice
Biased?
Julia Shvets, "Selection of Judges and Policy Enforcement: Theory and Evidence
from Russian Commercial Courts"
Max M. Schanzenbach and Emerson Tiller, "Strategic Judging Under the UnitedStates Sentencing Guidelines: Instrument Choice Theory and Evidence"

Panel VIIIE: Torts III (Room 214)
Panel Chair:Jennifer Arlen

Ronen Avraham and David Lee, “An Empirical Study of the Impact of Tort
Reform on Medical Malpractice”
Jonathan Klick and Thomas Stratmann, “Does Medical Malpractice Reform Help
States Retain Physicians and Does it Matter?”Catherine M. Sharkey, "Crossing the Punitive-Compensatory Divide”

5:00:

Wine and Cheese Reception (Greenberg Lounge)
Sponsored by Yale University Press