Do Punitive Damages Promote Deterrence

  title={Do Punitive Damages Promote Deterrence},
  author={J. Boyd and D. Ingberman},
  journal={International Review of Law and Economics},
  • J. Boyd, D. Ingberman
  • Published 1999
  • Economics
  • International Review of Law and Economics
  • This paper explores the deterrent effect of punitive damages. By contrast with the existing literature, we let capital investment -- an important determinant of deterrence -- be made in anticipation of liability. Our analysis challenges several common perceptions regarding the effects of punitive damages law. For instance, it is generally believed that "more punitive" liability increases deterrence, as potential defendants increase safety to reduce risk or to avoid being found punitively liable… CONTINUE READING
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