02.06.2023 Forthcoming paper in the Journal of Legal Studies

We are happy to announce that Prof. Friehe's paper titled "Fines versus Damages: Experimental Evidence on Care Investments", joint with Florian Baumann and Pascal Langenbach has been accepted for publication at the Journal of Legal Studies.

The paper studies the differential effects of fines and damages on people’s investment in accident prevention and reports results from a laboratory experiment in which monetary payoffs are maintained across the two policy instruments. While standard theory predicts no difference in behavior, participants as potential injurers invest substantially more money in accident prevention when they are subject to damages instead of a fine. These findings can be attributed to some behavioral channels, which are further discussed in the paper. 

The link to the published version of the paper will soon be found HERE.