American Law and Economics Association

Twenty-First Annual Meeting
May 20-21, 2011
Columbia Law School
Jerome Greene Hall
435 West 116th Street(Corner of Amsterdam & 116th Street)American Law and Economics Association 2010-2011
Officers
President: Louis Kaplow, Harvard University
Vice President: John Donohue, Stanford University
Secretary-Treasurer: Jennifer Reinganum, Vanderbilt University
Board of Directors
Class of 2011
Richard Brooks, Yale Law School
Ariel Porat, Tel Aviv University
Jeffrey Gordon, Columbia University
W. Bentley MacLeod, Columbia University
Class of 2012
Andrew Daughety, Vanderbilt University
Daniel Klerman, University of Southern California
Reinier Kraakman, Harvard UniversityKathryn Zeiler, Georgetown University
Class of 2013
Oren Bar-Gill, New York University
Jill Fisch, University of Pennsylvania
Betsey Stevenson, University of Pennsylvania
Abraham Wickelgren, University of Texas

Editors of the American Law and Economics Review
John J. Donohue, Yale University
Steven Shavell, Harvard University

Executive Secretary
Karen G. Crocco

Program Organizers for the 2011 Annual Meeting
Douglas Baird
Jonathan Baker
Omri Ben-Shahar
Margaret Brinig
Richard Brooks
Robert Daines
Mihir Desai
Samuel Issacharoff
Marcel Kahan
Michael Klausner
Lewis Kornhauser
Reinier Kraakman

Douglas Lichtman
Thomas Miles
Geoffrey Miller
Eric PosnerRobert Scott
Steven Shavell
Peter Siegelman
Matthew Stephenson
Alan Sykes
Abraham Wickelgren
Kathryn Zeiler

Friday, May 20(All sessions to be held in Jerome Green Hall at Columbia Law School)(Author's name in bold indicates person presenting paper)

8:00 – 8:45:

Registration and Continental Breakfast

9:00 – 10:30:

Session I:

Panel IA:

Procedure I: Lawyers (Room 102)

Panel Chair: Geoffrey Miller
Andrew F. Daughety and Jennifer F. Reinganum, "Search, Bargaining, and Agency in
the Market for Legal Services"
Siddhartha Bandyopadhyay and Bryan C. McCannon, "The Effect of the Election ofProsecutors on Criminal Trials"
Yuk-fai Fong and Frances Xu, "Defense Attorney's Fee Structure: a Signaling
Explanation"

Panel IB:

Antitrust I: Theory (Room 101)

Panel Chair: Jonathan Baker
Eray Cumbul, "Welfare Effects of Horizontal Mergers in Differentiated ProductMarkets under Cournot and Bertrand Game Settings"
Anne Duchene, Debapriya Sen, and Konstantinos Serfes, "Patent Licensing Contracts
and Entry Deterrence"
Carmine Guerriero, "The Political Economy of (De)Regulation: Theory and Evidence
from the U.S. Electricity Market"

Panel IC:

Contract Law I: Formal Models (Room 103)

Panel Chair: Florencia Marotta-Wurgler
Francesco Parisi, Giuseppe Dari Mattiacci, and Sander Onderstal, "Inverse Adverse
Selection: The Market for Gems"
Tracy R. Lewis and Alan Schwartz, "Long Term Contracting with Private
Information"
Zhiyong Liu and Ronen Avraham, "Investment Incentives and Efficiency under
Optional Remedies"Friday (cont.)
Panel ID:

Tort Law I: Theory (Room 107)

Panel Chair: Ronen Avraham
Ariel Porat, "Misalignments in Tort Law"
Alexander Stremitzer, "Restoring Causation through Proportional Liability: How
More Lenient Sanctions Lead to Higher Compliance"Ehud Guttel and Shmuel Leshem, "Buying the Right to Harm: The Economics ofBuyouts”

Panel IE:

Corporate and Securities I: Takeovers (Room 106)

Panel Chair: Marcel Kahan
Thomas W. Bates and David A. Becher, "Bid Resistance by Takeover Targets:Managerial Bargaining or Bad Faith?"
Jordan Michael Barry and John William Hatfield, "Takeover Defenses and Adverse
Selection"
Mark Humphery-Jenner, "On the Harmonization of Takeover Laws: Lessons fromthe EU Takeover Directive"

Panel IF:

Administrative Law I: Administrative Agencies (Room 105)

Panel Chair: Bert Huang
Griffin Edwards, "A Selection-Corrected Estimate of Chevron’s Impact on Agency
Deference"
William West and Connor Raso, "Agenda Setting in the Federal Rulemaking Process:
An Exercise in Political Control?"W. Kip Viscusi, "Policy Challenges of the Heterogeneity of the Value of StatisticalLife”

10:30 – 11:00:

Coffee BreakFriday (cont.)
11:00 – 12:30:

Session II:

Panel IIA:

Functions of Law (Room 101)

Panel Chair: Barak Richman
Gillian K. Hadfield and Barry R. Weingast, "What is Law? A Coordination Model of
the Characteristics of Legal Order"
Robert Cooter and Aaron Edlin, "Law and Growth Economics: A Framework forResearch"
Steven Shavell, “When is Compliance with the Law Socially Desirable?”

Panel IIB:

Property Law I: Property Theory (Room 102)

Panel Chair: Michael Heller
Abraham Bell and Gideon Parchomovsky, "Governing Property By Auction"
Lee Fennell, "Property and Precaution"
Yun-chien Chang and Henry E. Smith, "An Economic Analysis of Civil versus
Common Law Property"

Panel IIC:

History, Law Schools (Room 103)

Panel Chair: Daniel Klerman
Henry Hansmann and Mariana Pargendler, "Voting Restrictions in 19th Century
Corporations: Investor Protection or Consumer Protection?"
Giuseppe Dari-Mattiacci, “Slavery and Freedom: Reasons and Consequences of theUse of Rewards"
James C. Phillips, "Has the Marketplace become a Monopoly? Ideological Diversityand Entry-level Law School Hiring, 2005-2009"

Panel IID:

Corporate and Securities II: Executive Compensation (Room 104)

Panel Chair: Reinier Kraakman
Jeffrey N. Gordon, "Corporate Governance and Executive Compensation in Financial
Firms: The Case for Convertible Equity-Based Pay"
Mark Carey and Bo Sun, "Stock or Option: Compensation Design and Risk Choices"
Yonca Ertimur, Fabrizio Ferri, and David Maber, "Reputation Penalties for Poor
Monitoring of Executive Pay: Evidence from Option Backdating"

Friday (cont.)
Panel IIE:

Employment Law and Family (Room 105)

Panel Chair: Amy Wax
Marcello Basili, Alessandro Innocenti, and Antonio Nicita, "Workers' Right toVirtual Strike. An Experiment"
On Amir and Orly Lobel, "Innovation Motivation: Behavioral Effects of PostEmployment Restrictions"
Yehonatan Givati and Ugo Troiano, "Law, Economics and Culture: Theory andEvidence from Maternity Leave Laws"

Panel IIF:

Criminal Law I: Punishment and Race (Room 106)

Panel Chair: Nuno Garoupa
Jean N. Lee, "The Process is the Punishment: Juror Demographics and Case
Administration in State Courts"
Joshua Fischman and Max Schanzenbach, "Racial Disparities, Judicial Discretion, andthe United States Sentencing Guidelines"
Murat C. Mungan, "Optimal Warning Strategies in Law Enforcement"

Panel IIG:

Taxation I (Room 107)

Panel Chair: Nancy Staudt
Mihir Desai and Dhammika Dharmapala, "An Alternative Transfer Pricing Norm”
Thomas J. Brennan and Robert L. McDonald, "Deconstructing the Taxation of
Packaged Financial Strategies"
Yair Listokin, "Taxation and Liquidity"

12:30 - 2:00:

Lunch – Faculty House (adjacent to the Law School)
Sponsored by Cornerstone Research

Friday (cont.)

2:00– 3:30:

Session III:

Panel IIIA:

Tort Law II: Empirical (Room 101)

Panel Chair: W. Kip Viscusi
Anup Malani and Julian Reif, "Accounting for Anticipation Effects: An Application
to Medical Malpractice Tort Reform"
Jun Zhou, "The Predictability of Noneconomic Damages in Medical Malpractice
Settlements and Litigations: Evidence from Texas since 1988"
Myungho Paik, Bernard S. Black, David A. Hyman, and Charles M. Silver, "Will Tort
Reform Bend the Cost Curve? Evidence from Texas"

Panel IIIB:Intellectual Property I: Patents (Room 103)

Panel Chair: Michael Meurer
C. Scott Hemphill and Mark A. Lemley, "Earning Exclusivity: Generic Drug
Incentives and the Hatch-Waxman Act"
Jonathan Masur, "Patent Inflation"Thomas F. Cotter, "An Economic Analysis of Patent Law's Inequitable Conduct
Doctrine"

Panel IIIC:

Procedure II: Litigation (Room 102)

Panel Chair: Anthony Niblett
Amy Farmer and Paul Pecorino, "Pretrial Bargaining with Asymmetric Informationand Endogenous Expenditure at Trial”
Francesco Parisi, Barbara Luppi, and Davide Ferrari, "Jury Size and the Hung-Jury
Paradox"Scott Baker and Anup Malani, "Does Accuracy Improve the Informational Value ofTrials"

Friday (cont.)

Panel IIID:

Corporate and Securities III: Financial Markets (Room 105)

Panel Chair: Edward Iacobucci
Ryan Bubb and Alex Kaufman, "Securitization and Moral Hazard: Evidence from a
Lender Cutoff Rule"
Edward G. Fox, Merritt B. Fox, and Ronald J. Gilson, "Economic Crisis and Share
Price Unpredictability: Reasons and Implications"John Armour, Colin Mayer, and Andrea Polo, “Regulatory Sanctions and Reputational
Damage in Financial Markets”

Panel IIIE:

Antitrust II: Regulation (Room 107)

Panel Chair: William Bishop
James C. Cooper and Joshua D. Wright, "State Regulation of Alcohol Distribution:
The Effects of Post & Hold Laws on Consumption and Social Harms"
Koki Arai, "Ex-post Examination of Business Combination: Impacts on Retail Prices"
Yuliya V. Bolotova and Andrew M. Novakovic, "The Effect of the New York State
Milk Price Gouging Law on the Performance of Fluid Whole Milk Market: An
Empirical Analysis"

Panel IIIF:

Bankruptcy I: Empirical (Room 106)

Panel Chair: Richard Hynes
Daniel Sullivan and Frank McIntyre, "Long-Term Income Stagnation among theBankrupt"
Deniz Anginer and A. Joseph Warburton, "The Chrysler Effect: The Impact of theChrysler Bailout on Borrowing Costs"
Yilan Xu, "Does Mortgage Deregulation Increase Foreclosure? Evidence fromCleveland"

3:30 – 4:00:

Coffee BreakFriday (cont.)
4:00 – 5:30:

Session IV:

Panel IVA:

Contract Law II: Law and Economics of Contracts (Room 101)

Panel Chair: Avery Katz
Adam B. Badawi, "Self-Help and the Rules of Engagement"
Bernhard Ganglmair, "Material Breach of Contract and Rejection with Imperfect
Expectation Damages"
Florencia Marotta-Wurgler, "Does Disclosure Matter?"Panel IVB:

Tort Law III: Empirical (Room 102)

Panel Chair: Joanna Shepherd
Andrea Leiter, Magdalena Thöni, and Hannes Winner, "Evaluating Human Life Using
Court Decisions on Damages for Pain and Suffering"
Antonio Nicita and Simona Benedettini, "Measuring the ‘Peltzman Effect’ under aPenalty Point System"
Levon Barseghyan, Francesca Molinari, Ted O'Donoghue, and Joshua C. Teitelbaum,"The Nature of Risk Preferences: Evidence from Insurance Choices"

Panel IVC:

International Law (Room 103)

Panel Chair: John Allison
Cheryl Long, "Chinese Courts in Transition: Evolution, Causes, and Effects"
Eric A. Posner and Alan O. Sykes, "Noncompliance and Remedies in International
Law"
Kate Litvak, "The Effect of Immigration Laws on Firms’ Financial Decisions"Friday (cont.)
Panel IVD:

Administrative Law II: Government Structure and Policy (Room 107)

Panel Chair: Jacob Gersen
Bernd Hayo and Stefan Voigt, "Endogenous Constitutions: Politics and Politicians
Matter, Economic Outcomes Don’t"
Brian Galle, "The Politics of Federalism: Self-Interest or Safeguards? Evidence from
Congressional Control of State Taxation"
Nuno Garoupa and Tom Ginsburg, "Hybrid Judicial Career Structures: Reputation v
Legal Tradition”

Panel IVE:

Corporate and Securities IV: Empirical (Room 106)

Panel Chair: Alicia DavisHenry Hansmann and Steen Thomsen, "Virtual Ownership and Managerial Distance:
The Governance of Industrial Foundations"Anup Agrawal and Tareque Nasser, "Corporate Financial and Investment Policies inthe Presence of a Blockholder on the Board"
Michal Barzuza, "Self Selection and Market Segmentation in the Market for Corporate
Law"

Panel IVF:

Employment Law and Discrimination (Room 105)

Panel Chair: Orley Ashenfelter
Amy L. Wax, "Disparate Impact Realism"
Joni Hersch, "Sexual Harassment Risks and Pay Premiums"
Shamena Anwar, Patrick Bayer, and Randi Hjalmarsson, "Jury Discrimination in
Criminal Trials"

5:30 – 6:30:

Cocktails - Low Memorial Library Rotunda(Located on Campus Walk (116th Street))Sponsored by The Analysis Group

6:30:

ALEA Annual Dinner – Low Memorial Library Rotunda
Presiding: Louis Kaplow, President, President, ALEA
Speaker: John Donohue, Vice President, ALEA

Saturday, May 21
8:00 – 9:00:

Continental Breakfast

9:00 – 10:30:

Session V:

Panel VA:

Administrative Law III: Institutions and Transitions (Room 101)

Panel Chair: Cathy HaferAllison L. Westfahl Kong and Richard L. Revesz, "Regulatory Change and OptimalTransition Relief"
Barak Y. Orbach and Frances R. Sjoberg, "The Clucking Theorem: Legal Transitions,
Civility Norms, and Social Costs"
Filippo Belloc, Antonio Nicita, and Simone M. Sepe, "Liberalization-Privatization
Paths: Does Government Ideology Matter?"Panel VB:

Taxation II (Room 102)

Panel Chair: Mihir Desai
Michelle J. White, Daria Burnes, and David Neumark, "Fiscal Zoning and Sales
Taxes: Do Higher Sales Taxes Lead to More Retailing and Less Manufacturing?"
Victor Fleischer, "Taxing Founders' Stock"
David I. Walker, “The Taxation of Punitive Damages Liabilities”

Panel VC:

Corporate and Securities V: Venture Capital and LBOs (Room 103)

Panel Chair: Stephen J. Choi
Ola Bengtsson and Dan Bernhardt, "The Role of Lawyers in Venture Capital
Contracting: Theory and Evidence"
Ola Bengtsson and S. Abraham Ravid, "Geography and Style in Private Equity
Contracting: Evidence from the U.S. Venture Capital Market"
Jerry Cao, Douglas Cumming, and Meijun Qian, "Law, Investor Protection and LBOs”

Saturday (cont.)
Panel VD:

Criminal Law II: Law Enforcement (Room 107)

Panel Chair: Anne Morrison Piehl
Badi Hasisi, Yoram Margalioth, and Liav Orgad, "Ethnic Profiling in Airport
Screening: Lessons from Israel, 1968-2010"David S. Abrams, "Building Criminal Capital vs Specific Deterrence: The Effect ofIncarceration Length on Recidivism"
Dhammika Dharmapala, Nuno Garoupa, and Richard H. McAdams, "Agency Costs,Criminal Law Enforcement, and Criminal Procedure"

Panel VE:

Procedure III: Judges (Room 106)

Panel Chair: Ezra Friedman
Benjamin Alarie, Andrew J. Green, and Edward Iacobucci, "Is Bigger Always Better?
On Optimal Panel Size, with Evidence from the Supreme Court of Canada"
Carlos Berdejo, "It's the Journey, not the Destination: Judicial Preferences andDecision-making in the Ninth Circuit"
Stephen J. Choi, Eric A. Posner, and Mitu Gulati, "How Well do Measures of Judicial
Ability Translate into Performance?"

Panel VF:

Bankruptcy II: Theory (Room 105)

Panel Chair: Douglas Baird
Anthony J. Casey, "The Creditors' Bargain and Option-Preservation Priority inChapter 11"
Richard Hynes, “Redeeming Reorganization”
Patrick Bolton and Martin Oehmke, “Should Derivatives be Senior?”

10:30 – 11:00:

Coffee BreakSaturday (cont.)

11:00 – 12:30:

Session VI:

Panel VIA:

Tort Law IV: Theory (Room 101)

Panel Chair: Kathy ZeilerDavid Gilo, Ehud Guttel, and Erez Yuval, "Negligence, Strict Liability and Collective
Action"Abraham L. Wickelgren, "Settlement and the Strict Liability-Negligence
Comparison"
Giuseppe Dari-Mattiacci and Luigi Alberto Franzoni, "Innovation and Liability Law"

Panel VIB:Intellectual Property II (Room 103)

Panel Chair: Ben Roin
Alejandro Zentner, "Ten Years of File Sharing and its Effect on International Sales of
Copyrighted Music: An Empirical Analysis Using a Panel of Countries"
Dotan Oliar, "Copyright Law and Technological Change"
John Hagedoorn, Bart Dormans, and Geerte Hesen, "The Allocation of Intellectual
Property Control Rights in R&D Alliances"

Panel VIC:
Panel Chair:

Procedure IV: Politics and Judges (Room 102)
John de Figueiredo

Carlos Berdejo and Daniel L. Chen, "Priming Ideology? Electoral Cycles without
Electoral Incentives among US Judges”
Joanna M. Shepherd and Michael Kang, "The Partisan Price of Justice: An Empirical
Analysis of Campaign Contributions and Judicial Decisions"John R. Lott, Jr., "What Does the American Bar Association Judicial Rating ReallyMeasure?"Saturday (cont.)

Panel VID:

Environmental Law (Room 107)

Panel Chair: Henry Smith
Howard F. Chang and Hilary Sigman, "The Effect of Allowing Pollution Offsets withImperfect Enforcement"
Jonathan Masur and Eric Posner, "Climate Regulation and the Limits of Cost-Benefit
Analysis"
Richard L. Revesz and Matthew R. Shahabian, "Climate Change and Future
Generations"

Panel VIE:

Corporate and Securities VI: Governance (Room 106)

Panel Chair: Jill Fisch
Bo Becker, Dan Bergstresser, and Guhan Subramanian, "Does Shareholder ProxyAccess Improve Firm Value? Evidence from the Business Roundtable Challenge”
Douglas Cumming, Mark L. Humphery-Jenner, Eliza Wu, "Home-Country
Governance and Cross-Listing in the US"
Lucian A. Bebchuk, Alma Cohen and Charles C.Y. Wang, "Learning and theDisappearing Association between Governance and Returns”

Panel VIF:

Antitrust III: Exclusion (Room 105)

Panel Chair: Aaron Edlin
Edward M. Iacobucci and Ralph A. Winter, "Collusion on Exclusion"
Kathryn E. Spier and Claudia M. Landeo, "Vertical Contracts and Market
Foreclosure: An Experimental Study of Exclusive Dealing under Social Preferences"
Sue H. Mialon, "Exclusionary Bundling: The Motive for Merger"

12:30 – 1:45:

Lunch – Faculty House (adjacent to the Law School)
Sponsored by The Federalist SocietySaturday (cont.)

1:45 – 3:15

Session VII:

Panel VIIA:

Administrative Law IV: Judiciary (Room 101)

Panel Chair: Joshua Fischman
Matthew C. Stephenson and Justin Fox, "Judicial Review, Political Competition, andMinority Interests"
Michael D. Gilbert, "Judicial Independence and Social Welfare"
Raphael Franck, "Judicial Impartiality in Politically-Charged Cases"

Panel VIIB:

Criminal Law III (Room 102)

Panel Chair: Richard McAdams
Stéphane Mechoulan and Nicolas Sahuguet, "Assessing Racial Discrimination inParole Release"
Richard T. Boylan, "The Effect of Punishment Severity on Plea Bargaining"
Tonja Jacobi, "The Perverse Effect of the Exclusionary Rule on Guilt and Innocence"

Panel VIIC:

Property Law II (Room 107)

Panel Chair: Richard Brooks
Cherie Metcalf and Ian Keay, "Property Rights, Resource Access and Long Run
Growth"Keren Mertens Horn and Katherine O'Regan, "The Low Income Housing Tax Creditand Racial Segregation"
Oren Bar-Gill and Nicola Persico, "Possessory Interests and Property Rules"

Panel VIID:

Corporate and Securities VII (Room 103)

Panel Chair: Jeffrey N. Gordon
John Armour, Brian Cheffins, and Bernie Black, "Delaware’s Balancing Act"
Brian Broughman, "Entrepreneur Wealth and the Value of Limited Liability"
Gerard Hertig, "Governments as Vulture Investors: Credit Crisis Case Studies"

Saturday (cont.)

Panel VIIE:

Contract Law III: Experimental Studies of Contracting (Room 105)

Panel Chair: Eric Posner
Claudine Desrieux and Jean Beuve, "Relational Contracts and Endogenous
Contractual Incompleteness: Experimental Evidence "Doron Teichman and Yuval Feldman, "Are all Contractual Obligations CreatedEqual?"
Zev J. Eigen, "When and Why Individuals Obey Form-Adhesive Contracts:
Experimental Evidence of Consent, Compliance, Promise and Performance"

Panel VIIF:

Tort Law V: Theory (Room 106)

Panel Chair: Robert Cooter
Albert Choi and Kathryn E. Spier, "Should Consumers be Permitted to Waive
Products Liability? Product Safety, Private Contracts, and Adverse Selection"
Gerrit De Geest, "Who Should be Immune from Tort Liability?"
Ariel Porat and Avraham D. Tabbach, "Willingness to Pay, Death, Wealth andDamages"

3:15

Wine and Cheese Reception
Located on the first floor of Jerome Green Hall