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612-822-4611
Publicity and the Optimal Punitive Damage Multiplier

Publicity and the Optimal Punitive Damage Multiplier

Paperback

General Law

ISBN10: 1502355167
ISBN13: 9781502355164
Publisher: Createspace
Published: Sep 13 2014
Pages: 30
Weight: 0.21
Height: 0.06 Width: 8.50 Depth: 11.02
Language: English
When punitive damage awards create publicity, this could affect the behavior of uncompensated victims, which has implications for the optimal punitive damage multiplier. A new adjusted multiplier is derived that incorporates publicity into the analytical framework. Assuming that all victims receive uniform punitive awards, the result is a lower punitive multiplier relative to the standard result. The extent of the adjustment will depend on the likelihood of publicity, the strength of the publicity, and the number of victims. Finally, under certain litigation cost conditions, if courts allow heterogeneous punitive awards, then efficiency is improved relative to uniform awards.

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General Law