American Law and Economics Association
Fourteenth Annual Meeting
May 7-8, 2004
Northwestern University School of Law
357 East Chicago Avenue
Chicago, Illinois

Friday, May 7(All sessions to be held at the Northwestern University School of Law)
(Author's name in bold indicates person presenting paper)
8:00 - 8:45:

Registration
Continental Breakfast

8:45 - 9:00:

Welcome: Dean David E. Van Zandt

9:00 - 10:30:

Session I:

Panel IA:

Corporations and Securities I (Rubloff 150)

Panel Chair:

Lynn Stout

Eric Helland, A Secondary Market Test of the Merits of Class Action Securities
Litigation: Evidence from Reputation of Corporate
D. Bruce Johnsen and Supriya Sarnikar, Cyber Security in the National Market
SystemGillian Hadfield and Eric Talley, Public versus Private Provision of Corporate
Law
Panel IB:

Criminal Law I (McCormick 195)

Panel Chair:

Andrew F. Daughety

Jonathan Klick and Alex Tabarrok, Using Terror Alerts to Estimate the Effect ofPolice on Crime
Joanna M. Shepherd and Hashem Dezhbakhsh, The Deterrent Effect of Capital
Punishment: Evidence from a “Judicial Experiment”
Russell Smyth and Paresh Narayar, Dead Man Walking: An Empirical
Reassessment of the Deterrent Effect of Capital Punishment Using the Bounds
Testing Approach to Cointegration
Panel IC:

Procedure I (Rubloff 339)

Panel Chair:

Theodore Eisenberg

Samuel Issacharoff and John Fabian Witt, The Inevitability of Aggregate
Settlement An Institutional Account of American Tort Law
Richard McAdams and Janice Nadler, The Focal Point Theory of Expressive
Law: An Experimental Test of Legal Compliance in a Hawk/Dove GameAndrew J. Wistrich, Chris Guthrie, and Jeffrey Rachlinski, Can Judges Ignore
Inadmissible Information? The Fiction of Forced Forgetting

Friday, May 7 (cont.)
Panel ID:

Torts and Compensation Systems I (Rubloff 140)Panel Chair:Mark Geistfeld

Giuseppe Dari-Mattiacci, Negative Liability
Eric Rasmusen, Tortious Interference in Contract
Jennifer F. Reinganum and Andrew F. Daughety, Secrecy and Safety
10:30 - 10:45:

Coffee Break

10:45 - 12:15:

Session II:

Panel IIA: Administrative and Environmental Law (McCormick 195)
Panel Chair:Frank H. Easterbrook

Jonathan Nash, Framing Effects and Regulatory Choice: The Case ofEnvironmental Regulation
Barak Richman and Christopher Boerner, A Transaction Cost Economizing
Approach to Regulation Understanding the Government Responses to the NIMBY
Problem
Jason Scott Johnston, Signaling Social Responsibility: An Economic Analysis ofthe Role of Disclosure and Liability Rules in Influencing Market Incentives forCorporate Environmental Performance

Panel IIB:

Bankruptcy and Creditors’ Rights I (Rubloff 150)

Panel Chair:Marcus Cole

Kenneth Ayotte and Hayong Yun, Matching Bankruptcy Laws to Legal
Environments
Donald S. Bernstein and Douglas G. Baird, Relative Priority in an Absolute
Priority World
Randall S. Kroszner, Is It Better to Forgive than to Receive? An EmpiricalAnalysis of the Impact of Debt Repudiation

Friday, May 7 (cont.)
Panel IIC: Law and Development (Rubloff 339)
Panel Chair:

Henry B. Hansmann

Katharina Pistor and Chenggang Xu, Deterrence and Regulatory Failure inEmerging Financial Markets: Evidence from China and Russia
Daniel Berkowitz and Karen Clay, Initial Conditions, Institutional Dynamics andEconomic Performance
Daniel Klerman and Paul Mahoney, The Value of Judicial Independence:
Evidence from 18th-Century England
Panel IID: Intellectual Property (Rubloff 140)
Panel Chair:

Douglas Lichtman

Timothy Wu, Copyright's Communications Policy
Michael Abramowicz, Redundancy in Copyright Law
Stéphane Mechoulan and Tomas Phillipson, Intellectual Property and External
Consumption Effects Generalizations from Pharmaceutical Markets
12:15 - 1:30:

Lunch

1:30 - 3:00:

Session III:

Panel IIIA: Corporations and Securities Law II (Rubloff 150)
Panel Chair:

Robert Sitkoff

Lucian Bebchuk and Alma Cohen, The Costs of Entrenched Boards
Bernard Black, Brian Cheffins, and Michael Klausner, Outside Director Liability
Claire Hill, Regulating the Rating Agencies

Friday, May 7 (cont.)
Panel IIIB: International Law (Rubloff 339)
Panel Chair:

Alan Sykes

Vincy Fon and Francesco Parisi, Stability and Change in International Customary
Law
Andrew Guzman, The Design of International Agreements
Michael J. Trebilcock and Shiva K. Giri, The National Treatment Principle inInternational Trade Law
Panel IIIC: Social Norms (McCormick 195)
Panel Chair:

Lior Jacob Strahilevitz

Mark West, Dying to Get out of Debt: Consumer Insolvency Law and Suicide inJapan
Jeffrey Rachlinski and Chris Guthrie, Heuristics and Biases Among Expert
Negotiators
Ehud Guttel and Alon Harel, Probability Matching and the Law: A New
Behavioral Challenge to Law and Economics

Panel IIID: Torts and Compensation Systems II (Rubloff 140)
Panel Chair:Jennifer Arlen

Hans-Bernd Schäfer, Efficient Third Party Liability of Auditors in Tort Law andin Contract Law
Abraham L. Wickelgren, Mandatory Product Liability Why Tort Is More
Efficient than Contract
Kathryn Zeiler, Medical Malpractice and Contract Disclosure: An Equilibrium
Model of the Effects of Legal Rules on Behavior in Health Care Markets

3:00 - 3:15: Coffee BreakFriday, May 7 (cont.)
3:15 - 4:45: Session IV:
Panel IVA: Antitrust and Regulated Industries I (Rubloff 140)
Panel Chair:

Daniel L. Rubinfeld

Randal Picker, Entry, Access and Facilities-Based Competition
Ariel Katz, The Potential Demise of another Natural Monopoly: New
Technologies and the Future of Collective Administration of Copyrights
Ari Gerstle and Michael Waldman, Mergers in Durable-Goods Industries: A ReExamination of Market Power and Welfare Effects
Panel IVB: Contracts and Commercial Law I (Rubloff 150)
Panel Chair:

Jason Johnston

Robert E. Scott and George G. Triantis, Embedded Options and the Case against
Compensation in Contract Law
Ronen Avraham and Zhiyong Liu, Contract Remedies with Two-Sided
Uncertainty-A Simple Solution
Henrik Lando and Caspar Rose, The Myth of Specific Performance in Civil LawCountries
Panel IVC: Labor and Employment Law (Rubloff 339)
Panel Chair:

Michael Wachter

Christine Jolls, Identifying the Effects of the Americans with Disabilities Act
Using State-Law Variation: Preliminary Evidence on Educational Participation
Effects
Jonathan Nash and Samuel Estreicher, The Law and Economics of Tipping: The
Laborer's Perspective
J.H.(Rip) Verkerke, Legal Ignorance and Information-Forcing Rules

Friday, May 7 (cont.)
Panel IVD: Positive Political Theory I (McCormick 195)
Panel Chair:

Michael Abramowicz

Randall S. Kroszner and Thomas Stratmann, Campaign Contributions, Repeat
Giving, and the Rewards to Legislator Reputation
John de Figueiredo, The Structure of Legislatures and the Timing of Interest
Group Lobbying
George L. Priest, Buying Democracy: Rethinking Campaign Finance

5:30-6:45:

Cocktails in the Courtyard(In case of rain, cocktails will be held in the Levy Mayer foyer)

7:00:

Dinner in the Atrium
Speaker: Henry B. Hansmann of New York University

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

Continental Breakfast

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

Corporations and Securities III (Rubloff 150)

Panel Chair:

Paul G. Mahoney

Laura Nyantung Beny, Do Shareholders Value Insider Trading Laws?
International Evidence
Art A. Durnev and Amrita S. Nain, The Unanticipated Effects of Insider Trading
Regulation
Paul Oyer, Michael Greenstone, and Annette Vissing-Jorgensen, Mandated
Disclosure, Stock Returns, and The 1964 Securities Acts Amendments
Panel VB:

Contracts and Commercial Law II (Rubloff 140)

Panel Chair:

Jody Kraus

Oren Bar-Gill, Seduction by Plastic
Stephen J. Choi and Mitu Gulati, Innovation in Boilerplate Contracts
Omri Ben-Shahar, Agreeing to Disagree: Filling Gaps in Deliberately
Incomplete Contracts
Panel VC:

Property (McCormick 195)

Panel Chair:

Richard Epstein

Lior Jacob Strahilevitz, The Right to Destroy
Henry Smith, Property and Property Rules
Gideon Parchomovsky and Abraham Bell, What Property Is

Saturday, May 8 (cont.)
Panel VD:

Welfare and Family Law (Rubloff 339)

Panel Chair:

Margaret Brinig

Lee Anne Fennell, Poverty in Valuation
Ariel Porat and Omri Yadlin, Achieving Consensus for Wealth Redistribution
Through Deferred-Implementation Agreements
Antony Dnes and Robert Rowthorn, The Life-profile Theory of Marriage,
Cohabitation, and Same-sex Marriage
10:30-10:45:

Coffee Break

10:45-12:15:

Session VI:

Panel VIA: Antitrust and Regulated Industries II (Rubloff 140)Panel Chair:

Paul Rubin

D. Bruce Johnsen and Moin Yahya, The Evolution of Sherman Act Case Law: ARoadmap for Competitive Federalism
Suzanne Scotchmer, Profit Neutrality in Licensing: The Boundary Between
Competitions Policy and Patent Law
Barak Orbach, Antitrust and Pricing in the Motion Picture Industry
Panel VIB: Bankruptcy and Creditors’ Rights II (Rubloff 150)
Panel Chair:

Edward Morrison

Jonathan Fisher, Larry Filer and Angela C. Lyons, Is the Bankruptcy Flag
Binding? Access to Credit for Post-Bankruptcy Households
Alan Schwartz, A Normative Theory of Business Bankruptcy
Anup Malani, The Impact of Joint & Several Liability on the Bankruptcy Rate ofDefendants: Evidence from Asbestos Litigation

Saturday, May 8 (cont.)
Panel VIC: Procedure II (McCormick 195)
Panel Chair:

Russell Smyth

A. Mitchell Polinsky and Daniel L. Rubinfeld, Remedies for Price Overcharges:
The Deadweight Loss of Coupons and Discounts
Steven Shavell, On the Discretion of Adjudicators
Chris Sanchirico, Evidence, Procedure, and the Upside of Cognitive Error
Panel VID: Taxation and Public Finance (Rubloff 339)
Panel Chair:David Weisbach

Dhammika Dharmapala and Mihir A. Desai, Corporate Tax Avoidance and HighPowered Incentives
Luigi Zingales, Mihir A. Desai, and Alexander Dyck, Corporate Governance andTaxation
Michal Barzuza, Delaware's Compensation
12:15-1:30: Lunch
1:30 - 3:00: Session VII:
Panel VIIA: Corporations and Securities Law IV (Rubloff 150)
Panel Chair:

Albert Choi

Theodore Eisenberg and Jonathan R. Macey, Was Arthur Andersen Different?
An Empirical Examination of Major Accounting Firms' Audits of Large Clients
Richard R.W. Brooks and Kathryn Spier, Trigger Happy or Gun Shy?
Guhan Subramanian, Post-Siliconix Freeze-Outs: Theory, Evidence & Policy

Saturday, May 8 (cont.)
Panel VIIB: Criminal Law II (Rubloff 339)
Panel Chair:Jennifer F. Reinganum

Winand Emons, Escalating Penalties for Repeat Offenders
Phil Curry and Steeve Mongrain, What You Don't See Can't Hurt You: An
Economic Analysis of Morality Laws
Richard Boylan, Fiscal Federalism and the War on Drugs
Panel VIIC: Positive Political Theory II (McCormick 195)
Panel Chair:

James Lindgren

Max Schanzenbach, Racial and Gender Disparities in Prison Sentence: The
Effect of District-Level Judicial Demographics
F. Andrew Hanssen, Learning about Judicial Independence Institutional Changein the State Courts
Stephen Choi and Mitu Gulati, Who Would Win a Tournament of Judges?
Panel VIID:

Torts and Compensation Systems III (Rubloff 140)

Panel Chair:

Eric Rasmusen

Jennifer Arlen and Bentley MacLeod, Beyond Master-Servant: A Critique ofVicarious Liability
Mark Geistfeld, Economic Analysis in a Unified Conception of Tort Law
Kathryn Spier and Xinyu Hua, On the Value of Information in Sequential
Litigation
3:15 - 4:45: Session VIII:
Panel VIIIA: Antitrust and Regulated Industries III (Rubloff 140)
Panel Chair:

Daniel L. Rubinfeld

Nuno Garoupa, Regulation of Professions in US and Europe: A ComparativeAnalysis
Joshua Wright and Benjamin Klein, Why Manufacturers Purchase Shelf Space
from Retailers: The Antitrust Law & Economics of Category Management
Antonio Nicita, Regulation & Competition in Media Markets: The Evolution ofPay-TV in UK, Australia and Italy

Saturday, May 8 (cont.)
Panel VIIIB: Contracts and Commercial Law III (Rubloff 150)
Panel Chair:

Anup Malani

Kate Litvak, Venture Capital Partnership Agreements: Understanding
Compensation Arrangements
Ronald Mann, The Myth of the Software Patent Thicket: An EmpiricalInvestigation of the Relationship Between Intellectual Property and Innovation in
Software Firms
Jochen Bigus, Staging of Venture Financing, Investor Opportunism, and PatentLaw
Panel VIIIC: Positive Political Theory III (McCormick 195)
Panel Chair:

Andrew Hanssen

Edward J. McCaffery, Linda Cohen, and Fred McChesney, Shakedown at Gucci
Gulch: A Tale of Death, Money & Taxes
Tom Ginsburg and Robert Cooter, Leximetrics: Why the Same Laws are Longer
in Some Countries than Others
Anita Charuworn and Linda Cohen, Patented Drugs, Generic Alternatives andIntellectual Property Regimes in Developing Countries

5:00:

Wine and Cheese Reception

The American Law and Economics Association thanks the following people
for their contributions to the Annual Meeting:

The Program CommitteeFrank H. Easterbrook
Barry Adler
Louis Kaplow
The Organizers of the Sessions for the 2004 Annual Meeting
Margaret F. Brinig
David Dana
Theodore Eisenberg
Richard A. EpsteinDaniel R. FischelHenry Hansmann
Jody S. Kraus
Douglas Lichtman
Paul G. Mahoney
Eric PosnerRobert K. Rasmussen
Jennifer F. Reinganum
Edward B. Rock
Steven Shavell
Andre Shleifer
Robert Sitkoff
Alan Sykes
Emerson Tiller
Michaeel WachterDavid Weisbach
The Annual Meeting Arrangements Committee:
Robert SitkoffLisa Bernstein
Executive Secretary:
Karen Crocco
Conference Administrative Support:
Patricia Florio
Kathleen Ginty
Robinette Hicks
Leslie De MonteandThe Administrative and Audio Visual Support Staff atNorthwestern University School of Law