MGEC71H3 Chapter Notes - Chapter 1: Contingent Fee, Scrubbers, Progressive Tax
4 Oct 2017
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Some examples: we will identify the implicit price that legal rule attaches to behaviour, we predict the consequences of variations in that implicit price, evaluate the effects in terms of efficiency and distribution. Example 1: a commission on reforming criminal law has identified certain white- committed after rational consideration of the potential gain and the risk of getting caught and punished. After taking extensive testimony, much of it from economists, the commission decides that a monetary fine is appropriate punishment for these collar crimes (cid:523)such as embezzling money from one"s employer(cid:524) that are typically offenses, not imprisonment. Example 2: an oil company contracts to deliver oil from the middle east to a. Before the oil is delivered, war breaks out and the oil company cannot perform as promised. The lack of oil causes the european manufacturer to lose money. The manufacturer brings an action (files a lawsuit) against the oil company for breach of contract.
