Marta Cenini , Barbara Luppi and Francesco Parisi (University of Milan - Faculty of Law , Università degli studi di Modena e Reggio Emilia - Facolta di Economia and University of Minnesota - Law School) have posted Incentive Effects of Class Actions and Punitive Damages Under Alternative Procedural Regimes on SSRN. Here is the abstract:
- In an economic perspective, punitive damages and class actions can be viewed as sharing a common economic function – creating optimal deterrence. Building on Parisi and Cenini (2010), we study the effect of alternative procedural regimes on the effectiveness of punitive damages and class actions. Specifically, we compare the workings of punitive damages and class actions in the American and English (“loser-pays”) regimes. Our findings help explain the limited use and late adoption of class actions and punitive damages in Europe.
